An Act amending the act of December 14, 1988 (P.L.1192, No.147), known as the Special Ad Hoc Municipal Police and Firefighter Postretirement Adjustment Act, providing for 2026 special ad hoc municipal police and firefighter postretirement adjustment; in financing of special ad hoc adjustment, providing for reimbursement by Commonwealth for 2026 special ad hoc adjustment; in administrative provisions, further providing for municipal retirement system certification of adjustments paid and of reimbursable amounts and for municipal receipt of reimbursement payment; and making an editorial change.

HB 1289 establishes a 2026 adjustment for retired municipal police officers and firefighters who retired before January 1, 2016, and have been retired for at least 10, 15, or 20 years as of January 1, 2026. Eligible retirees will receive monthly payments of $250, $375, or $500 based on their retirement duration, with reductions for prior benefits received and caps if multiple retirement systems apply. Municipalities must certify these payments and will receive full reimbursement from the Commonwealth for the 2026 costs. This extends a similar state reimbursement program previously used for 2002 adjustments.