PERS 1 one-time benefit increase takes effect July 1

Beginning July 1, Public Employees’ Retirement System Plan 1 (PERS 1) members will receive a one-time 3% benefit increase.

HB 1390, passed during the 2020 session, provides a one-time 3% Cost of Living Adjustment (COLA), capped at a maximum increase of $62.50 per month, for all members of PERS 1 who are not receiving a minimum benefit. The COLA will be funded through an increase in PERS Plan 2 employer contributions.

Starting September 1, 2020, cities will see their current PERS 2 surcharge increase from 4.76% to 4.88%. The estimated cost to local governments for the upcoming year is $5.7 million. This is in addition to the $175 million already contributed by local governments to make up the current deficit in the program. By 2030, local governments will contribute over $77.9 million to pay for the increase.

Unfortunately, this increase comes at a time when city budgets have been severely impacted by COVID-19. We encourage you to review your current PERS 2 surcharge and plan for the .12% increase to take place on September 1.