Bill > SB709

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. Specifically, beginning on December 31, 2025, the bill allows for an annual increase to the existing 80% limitation on total increases, not to exceed 1% per year. This increase is contingent on the retirement system's investment performance - if the system's investments earn at least 2% more than the previously adopted investment return rate, the percentage of retirement allowance increases can be increased by 1%. The total increases granted to a retired member or beneficiary would now be allowed to reach up to 100% of the original retirement allowance, and the percentage of increases cannot be decreased. This change provides more flexibility for adjusting retirement benefits based on the financial performance of the retirement system, potentially offering retirees slightly more generous cost of living adjustments in the future.

Government Affairs

https://www.senate.mo.gov/25info/BTS_Web/Bill.aspx?SessionType=R&BillID=5391667