Bill > S1362

This bill proposes changes to how cost of living adjustments (COLAs) are handled for local retirees, specifically impacting public service pensions. Section 1 amends existing law to mandate an annual cost of living increase of 3 percent for retirees, applied to a base pension amount of at least $12,000, ensuring that retirees receive a consistent annual boost to their retirement income to help offset inflation. Section 2 adds a provision to prevent pension boards from denying a cost of living increase if the average investment return over the past two years meets or exceeds the assumed rate of return for those same years, providing a safeguard for retirees' COLAs even during periods of fluctuating market performance.