Bill advances to the house which increases cost of living adjustment for first time in more than five years
The House Ways and Means Committee has passed HB 1231 - Pension Cost Of Living Adjustments (COLA) for TRF/PERF retirees.
The bill previously passed through the House Employment, Pensions and Labor Committee unanimously before it was recommitted to the Ways and Means committee this week. Now it is alive in the full House and is up for 3rd reading on Monday, February 3rd.
ISTA conducted numerous workshops last fall to inform members of the proposed INPRS changes and pension issues. Thank you to the more than 3,000 members who participated in the workshops and helped spread the word.
Please contact your Representative and ask them to vote YES on providing a COLA to TRF/PERF retirees.
The HB 1231 provides a cost-of-living adjustment (COLA) to retirees in the PERF/TRF pension funds. The COLA would be provided for one year with a determination on a yearly basis afterwards.
Details of the COLA increase are:
- 1.5% COLA to a member who retired before January 1, 1983
- 1% COLA to a member who retired after December 31, 1982 and before January 1, 1995
- 0.5% COLA to a member who retired after December 31, 1994
There has been no COLA since 2008. Although a “13th check” has been provided in previous years. A 13th check bill, HB 1074 (Rep. Woody Burton, R-Whiteland), still moving in the House.
The state has a history of providing “catch up” funding to offset a decline in retirees’ purchasing power combined with inflation. Fiscal analysis shows that the fund is in good shape. In fact, actuarial projections also figure a 1% COLA each year, but the longer the legislature waits to provide it, the more likely it is that the percentage will decrease.
We ask that members please continue to engage legislators to support a COLA this legislative session.