Bill > HB2547

This bill raises the cost-of-living threshold for supplemental pension benefits for retired municipal police officers, firefighters, and employees of waterworks and sewage systems from the first $15,000 to the first $45,000 of their annual benefit. Currently, retirees receive an annual supplemental pension benefit based on the consumer price index (CPI) increase, with a maximum of 4% per year, but only on the first $15,000 of their total annual benefit. The bill expands this threshold to $45,000, meaning more of their pension will be eligible for cost-of-living adjustments. Retirees are still generally not eligible for these supplemental benefits until two years after their retirement, with some exceptions for those who retired before the law's effective date. The bill also maintains provisions that if the supplemental benefit lags behind the CPI by more than 25%, the 4% annual cap can be temporarily suspended. Additionally, the bill requires annual actuarial reviews of municipal police and firefighter pension funds to ensure their financial soundness, and allows the board of trustees to adjust member contributions if necessary to maintain the fund's stability.