Bill > HB2095

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 annual increases. Under the current law, the board of trustees could increase retirement allowances by up to 5% annually if the cost of living increased, with a total cap of 80% of the original retirement allowance. The new bill adds a provision that beginning December 31, 2026, the board can approve an annual increase of up to 2% based on the system's investment performance. If the system's investments earn at least 2% more than the previous year's investment return rate, the percentage of retirement allowance increases would be increased by 2%. Retired members who have already reached the 80% cap would still receive a 2% COLA, but these increases would not be cumulative. In years when the system's investments do not meet the 2% threshold, no additional COLA would be granted to members who have reached the 80% cap. The bill aims to provide a more flexible and performance-linked approach to cost of living adjustments for retired public school and education employees.

Labor and Employment

https://house.mo.gov/Bill.aspx?bill=HB2095&year=2026&code=R