Committee advances bill to restore 3% COLA after broad testimony on retirees' hardship
Loading...
Summary
Sen. O'Rourke's SB339 (LC560371) to restore a 3% cost-of-living adjustment moved out of committee after extensive testimony from retirees and ERS staff; ERS director warned of significant unfunded liability and urged a measured, funding-responsive approach.
The Senate Committee on Retirement advanced SB339 (LC560371), a bill addressing restoration of a 3% cost-of-living adjustment (COLA) for certain state retirees. Sen. O'Rourke presented the bill as a moral imperative to honor prior commitments and said retirees have experienced material declines in purchasing power since the COLA was removed in the 2008–09 financial period.
Multiple witnesses and retirees— including Chuck Clay, who represents state retirees—testified in favor of restoring COLAs and urged lawmakers to act on behalf of retired public servants. Clay told the committee that, had a 3% COLA continued since it was ceased, the cohort of roughly 54,000 retirees would have realized substantially higher cumulative benefits, and he framed the proposal as restoring both justice and hope to retirees.
Mr. Popin, director of the Employees' Retirement System (ERS), testified about fiscal mechanics and constraints. He said the tiered system created in 2009 and other structural changes mean that a mandated 3% COLA would add roughly $400 million in unfunded liability in a single year and that an independent actuary estimated pension changes tied to this bill would exceed $4 billion. He cautioned a mandated COLA could undermine the board’s capacity to manage the system and argued prefunding and a funding-sensitive COLA model would be a more sustainable approach.
After public testimony and discussion, Sen. Goodman moved to do pass SB339 (LC560371); Sen. O'Rourke seconded and the committee passed the measure by affirmation.
The committee record shows continued debate between restoring retiree benefits and preserving the retirement system’s funded status; no final implementation schedule or prefunding mechanism was adopted in committee.
