Chair outlines plan to tie pension COLAs to funding benchmarks; committee discussion continues

Senators heard a presentation and debate Thursday on legislation designed to tie cost‑of‑living adjustments for multiple public pension systems to measurable funding benchmarks.

Sponsor Senator Bullard said SB 172 would move COLA decisions from direct legislative action to professional boards and set benchmarks at 80, 85, 90, 95 and 100 percent funded ratios. The bill would permit a COLA of up to 2 percent when a three‑year rolling average keeps a fund from dropping below its current benchmark, "so the fund is never gonna be allowed to back up," the sponsor said.

Committee members asked for current funding levels. Senator Bullard said roughly half of the six systems are at or above 100 percent funding; the teachers' system is about 80 percent funded and the firefighters' fund around 74 percent. He noted the state supplements teacher retirement by about $450 million and said the proposed language is not a required 2 percent COLA but allows boards to grant up to that amount when the benchmarks are met.

The sponsor struck the bill title to allow further actuarial review and to refine language on benchmarks, board authority and protections against the fund falling below its benchmark. No committee vote on SB 172 appears in the provided transcript; the bill remains under consideration and will require actuarial work before returning to committee or the floor.