PERS Plan 1 participants will see cost-of-living adjustments (COLA), while cities will see increased employer contributions.
HB 1390 implements a one-time, 3% increase to monthly benefits for Pers Plan 1 participants capped at $62.50 per month. Funding for this increase comes from additional PERS Plan 2 employer contributions.
The fiscal note on the bill estimates that local governments will see a $5.7 million increase in contributions between 2020 and 2021. By 2030, local governments will contribute over $77.9 million to pay for the increase.
HB 1390 passed both the House and Senate and is now headed to the Governor for signature.