Bill > S1406

This bill proposes changes to how cost-of-living adjustments (COLAs) are handled for public retirees. Specifically, it amends existing law (chapter 32) to gradually increase a dollar amount related to COLAs from $13,000 to $14,000 in fiscal year 2016, $15,000 in fiscal year 2017, and $16,000 in fiscal year 2018. Additionally, it mandates that the PRIM board, which manages public employee retirement investments, will report annually starting in March 2018 on its investment returns. This report will indicate if the average rate of return over the previous two years has exceeded the assumed rate of return by two percent. If this condition is met, the state legislature will then decide whether to further increase the dollar amount for retiree COLAs.