Bill > HB1138

This bill clarifies how the Consumer Price Index (CPI), a measure of inflation published by the U.S. Department of Labor, is used to calculate cost-of-living adjustments (COLAs) for retirees of the State Retirement and Pension System in specific years. Currently, the CPI for a full calendar year is used to determine the annual cost-of-living rate, which is then applied to an allowance, meaning a retiree's regular monthly payment, to adjust for inflation. This bill specifically addresses the CPI calculation for the calendar year ending December 31, 2025, which affects COLAs effective July 1, 2026, and July 1, 2027. Instead of using the annual average CPI for 2025, the bill mandates that the CPI for that year will be calculated by averaging the CPI values for September 2025 and November 2025. This change is intended to provide a more precise or timely adjustment for retirees in those particular years.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1138?ys=2026RS