On Monday, February 18, the House Committee on Appropriations will hold a public hearing on HB 1390, which provides a one-time 3 percent Cost of Living Adjustment (COLA), capped at a maximum increase of $62.50 per month, for all members of the Public Employees’ Retirement System (PERS) Plan 1 who are not receiving a minimum benefit. The bill was initially scheduled for a public hearing on Monday, February 11, but the committee meeting was cancelled due to inclement weather.

In October 2018, AWC lobbyist Logan Bahr provided the city perspective on this policy in his testimony to the Select Committee on Pension Policy, “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.”

AWC is currently opposed to the bill, but will continue to engage policymakers and monitor all developments on this bill.

Dates to remember

HB 1390 is scheduled for a public hearing in the House Appropriations Committee on Monday, February 18 at 3:30 pm.