SB117 revises the Public Employees Retirement Act to change how cost-of-living adjustments (COLAs) are provided to certain public employee pension recipients. It repeals and reenacts Section 10-11-118 to make eligible recipients include qualifying retired members, disability retirees, and survivor beneficiaries who meet specified retirement or benefit-receipt waiting periods. Beginning in 2026, the retirement board must certify the Social Security and Supplemental Security Income COLA for the year, and the Public Employees Retirement Association must apply that same percentage increase to qualified pensions each July 1.
The bill also allows a qualified pension recipient to decline the increase by giving written notice at least 30 days before the adjustment takes effect. In addition, SB117 appropriates $50 million from the general fund to the Public Employees Retirement Association for fiscal year 2026 and later years to support the COLA program, with any unused balance allowed to carry forward rather than revert to the general fund. The act becomes effective December 1, 2025.
Impact
SB117 would directly amend state retirement law governing public employee pensions by replacing the existing COLA framework with one tied to the annual federal Social Security and SSI COLA. It affects the Public Employees Retirement Association, the retirement board, and eligible retirees and survivor beneficiaries under the Public Employees Retirement Act, while also creating an ongoing general fund appropriation to finance the benefit increase.
Sentiment
No committee transcripts or recorded votes were provided, so there is no documented debate or vote history to gauge legislative sentiment. Based on the bill text alone, the measure appears supportive of retirees and pension beneficiaries by guaranteeing a COLA linked to federal inflation adjustments and by providing dedicated funding for the benefit.
Contention
The main policy issue apparent from the bill is fiscal cost: the measure requires a $50 million general fund appropriation and makes the money available in future fiscal years without reversion, which could raise budget concerns. Another possible point of discussion is the design of the COLA itself, since it ties state pension increases to federal Social Security and SSI adjustments rather than a separate state formula, and it limits eligibility to recipients who meet specified retirement-duration thresholds.