The Select Committee on Pension Policy (SCPP) held a public hearing on October 16 to discuss a post-retirement Cost of Living Adjustment (COLA) for Plan 1 members of the Public Employees’ Retirement System (PERS) and the Teachers’ Retirement System (TRS).
AWC’s Logan Bahr provided the city perspective in his testimony to the committee stating, “Our primary concern is the significant cost of the ad-hoc [PERS 1] COLA on local governments… Local governments continue to struggle with limited revenue options, decreased state resources, and lack of control on cost drivers.”
In 2017, the SCPP recommended to the Legislature a one-time 3 percent COLA, capped at a maximum increase of $62.50 per month, for all members not receiving a minimum benefit. During the 2018 session, the Legislature modified the SCPP proposal passing SSB 6340, which implemented a one-time 1.5 percent COLA, capped at a maximum increase of $62.50 per month, for all members not receiving a minimum benefit.
The SCPP is scheduled to meet again in November to further discuss a potential COLA recommendation to the 2019 Legislature. AWC will continue to monitor any new developments on this issue.