Bill > HB329

This bill modifies the total cost of living adjustments (COLAs) for members of the Public School Retirement System and the Public Education Employee Retirement System by introducing a new mechanism for increasing the limitation on retirement allowance increases. Currently, retired members can receive cost of living increases up to 80% of their original retirement allowance. Beginning December 31, 2025, the bill allows for an annual increase to this limitation, not exceeding 1% per year, which would be dependent on the system's investment performance. Specifically, if the system's investments earn two percent or more in returns above the previously adopted investment return rate, the percentage of retirement allowance for total increases granted to a retired member would increase by one percent. The total increases would now be allowed to reach up to 100% of the original retirement allowance, and the percentage of increases cannot be decreased. This change applies to both the Public School Retirement System and the Public Education Employee Retirement System, providing more flexibility for potential cost of living adjustments based on the financial performance of the retirement systems' investments.

Government Affairs, Labor and Employment

https://house.mo.gov/Bill.aspx?bill=HB329&year=2025&code=R