LEGISLATIVE UPDATE: Retirement Board asks for bonuses rather than COLAs

Jan 27, 2023

The legislature returned on Wednesday and immediately began filing bills. SEANC's Government Relations team is tracking every bill to identify anything related to state employees and retirees. We expect committee meetings to start next week.

The Retirement System Board of Trustees also met this week and made its final recommendation of a 2% bonus for retirees in both 2023 and 2024, paid by the general fund. The board made its decision based on an actuarial analysis that stated a cost-of-living adjustment (COLA) would cost the same as gains made by the system. Fewer state employees are paying into the system, while the number of retirees has increased. Therefore, the legislature would have to decide to increase its contribution to pay for a COLA.

It's important to note that a recommendation by the Retirement System Board does not mean an appropriation for a COLA will happen. However, the legislature does put a certain amount of reliance on the recommendation.

SEANC has made it clear to legislators that retirees demand a true cost-of-living adjustment, not just another bonus. We will continue to press lawmakers to invest in a true COLA in the upcoming state budget debate.

With the legislature now in full swing, it's more important than ever for members to BE READY TO ACT.

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