Retirement system explains COLA formula; estimates 2% COLA expected this July, warns 3% proposal adds substantial cost
ERS showed how a hurdle‑rate formula determines annual COLAs and illustrated that with current assumptions a 2% COLA is expected this July; ERS said a separate bill that would mandate 3% annual COLAs (SB339) carries an approximate $500M annual cost that would be incremental to existing prefunding.
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Jim Potvin, executive director of the Employees Retirement System of Georgia, explained to senators how ERS calculates annual cost‑of‑living adjustments (COLAs) and why the system currently uses a formula tied to investment returns and funded ratio.
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