House approves annual retirement‑benefit correction after funding debate

Representative Corey Holdaway presented House Bill 145, the recurring measure intended to equalize retirement credits for a subset of public employees who currently receive a 1.25% credit. Holdaway described the bill as a long‑standing effort with a fiscal note that has declined over time; he noted the fiscal estimate this session at roughly $1.2 million compared with a prior estimate as high as $3 million.

Members questioned the funding mechanics and long‑term obligations. Representative Jay Dougal asked whether the measure would be funded by an appropriation or would instead increase contribution rates, to which the sponsor explained the fiscal note details: if not directly appropriated, an increase in retirement rates could result in a 0.15 percentage‑point increase rolled into the defined‑benefit system. Representative Dougal emphasized that such changes affect total compensation and could shift money away from salaries or other benefits.

Supporters urged passage on equity grounds for older retirees who had retired under lower credited rates; Representative Sherliff and others recounted cases of retirees with small benefits. Representative Mathis declared a personal conflict of interest (his father is affected) and nonetheless supported correcting what he called an "inequity." After floor discussion, members voted and the bill passed: roll call announced 61 yes, 7 no, and 7 absent. The bill will be transmitted to the Senate for further consideration.

Lawmakers acknowledged the bill’s recurring nature and asked leadership to consider funding alongside other fiscal priorities as the measure advances.