Public Testimony Highlights PERS 1 Retirees' Loss of Purchasing Power

The Select Committee on Pension Policy convened on June 17, 2025, to discuss critical issues affecting pension funds and the financial security of retirees. A significant point of discussion centered around the implications of a proposed house bill that would redirect funds from the pension system into a special fund managed by the state treasurer. This move raised concerns among committee members about the potential loss of protections for pension assets, which some described as being taken out of a "lockbox."

During the meeting, Robert Baker, a retiree from the Public Employees Retirement System (PERS) 1, shared his personal experience and highlighted the alarming decline in purchasing power for PERS 1 members. Baker noted that over the past decade, benefits for PERS 1 retirees have lost more than 30% of their purchasing power, emphasizing the urgent need for a cost-of-living adjustment (COLA) to support these retirees.

The committee acknowledged Baker's testimony and expressed gratitude for the ongoing efforts to provide financial relief to PERS 1 members. The meeting concluded with no further public comments, and the committee announced a scheduled executive session to begin at 12:15 PM, allowing members a brief break before continuing their discussions.

This meeting underscored the ongoing challenges faced by pension systems and the importance of safeguarding the financial well-being of retirees in the state.