An Act To Eliminate The Cap On Retirement Benefits For State Employees And Teachers To Which A Cost-Of-Living Adjustment Is Made

This bill raises the limit on cost-of-living adjustments for the retirement benefits of state employees, teachers, judges, and legislators from $24,186.25 to $40,000. It requires that any percentage increase in the Consumer Price Index be applied to the first $40,000 of a retiree's annual benefit, up to a maximum annual increase of 3%. To fund this change, the legislation allocates approximately $745 million in one-time general fund appropriations to cover the resulting increase in unfunded liabilities for teacher and public employee retirement systems. The bill includes an emergency clause to ensure the new rules take effect immediately upon approval rather than waiting the standard 90-day period.