On November 13 the Select Committee on Pension Policy (SCPP) voted to recommend to the Legislature a Cost of Living Adjustment (COLA) for Plan 1 members of the Public Employees’ Retirement System (PERS).
The policy draft includes 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 a similar 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.
At the October 16 public hearing, 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.”
AWC will continue to engage policy makers and monitor all new developments on this issue.