Both the House and Senate supplemental budgets include an increase in PERS Plan 2 employer contributions to cover a one-time, ongoing 3% PERS Plan 1 cost-of-living adjustment (COLA).
While the wording in each budget is slightly different, the outcome remains the same – cities will see a 0.12% increase to employer contributions to fund the COLA effective July 1, 2020. 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.
To view 2019 employer contributions to the state retirement system, please refer to the data reported by the Department of Retirement Services.
AWC remains opposed to this increase and will continue lobbying legislators to increase the state’s contributions to fund the proposed PERS Plan 1 COLA.