Select Committee hears actuarial update, discusses ad hoc COLA and next steps for session

The Select Committee on Pension Policy’s executive committee heard an actuarial overview and discussed next steps for ad hoc COLA and related pension legislation.

Michael Harbour, actuary for the Office of the State Actuary, told the committee OSA prepares fiscal notes during session and aims to deliver that analysis before fiscal committee hearings. "We will start working on analysis in preparation for session almost immediately," Harbour said, adding that OSA is available to consult with staff and decision-makers but operates within nonpartisan limits.

Committee members pressed for updated analyses on two bills and the recently passed COLA provision. Joshua Klooz asked whether OSA would update the COLA fiscal analysis; Harbour said yes and agreed to circulate updated fiscal notes directly to staff. Harbour also noted the Pension Funding Council recently acted on economic assumptions and that the new valuation and projections are available to inform decision-makers.

Senator Conway, identified in the transcript, framed the committee’s role as study and policy recommendation rather than final statutory action: "this committee is about pension policy and pension policy recommendations…not necessarily to direct the State Investment Board," he said, urging that legislative decisions be made through the normal bill process. Conway stressed concern for retirees and said the legislature, not the committee, should weigh statutory remedies.

Committee staff confirmed they will draft a letter reflecting the exact referral motion for chair and committee signature and circulate actuarial updates as they are completed. Members also discussed public input: staff reported about 15 pieces of correspondence and said nearly 500 participants had logged in in support of the ad hoc COLA at a prior meeting.

The committee did not take any formal legislative votes on bills at this meeting; staff and OSA were directed to provide updated fiscal notes and supplemental educational material ahead of the session.

The committee adjourned after taking the procedural steps to finalize follow-up materials for members.