Bill > LD1040

This bill modifies the cost-of-living adjustment (COLA) for retired state employees and teachers who retired on or before June 30, 2011, by increasing the cap on retirement benefits eligible for an annual percentage increase. Currently, the COLA applies to the first $24,186.25 of a retiree's annual benefit, with increases tied to the Consumer Price Index (CPI) and capped at 3%. Effective July 1, 2026, the bill raises this cap to $40,000, meaning that retired state employees and teachers who retired before July 1, 2011, or their beneficiaries will receive a percentage increase on up to $40,000 of their annual retirement benefit, with this amount to be indexed for future years based on the same percentage adjustments granted in subsequent years. This change aims to provide additional financial support to long-retired state employees and teachers by allowing a COLA on a larger portion of their retirement benefits.