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Commission recommends PARA contribution‑rate cuts, modest COLA boost as funding improves
Summary
Members recommended Senate File 4721/House File 4514 to lower employee and employer contribution rates for the PARA correctional plan and raise its COLA cap, with PARA staff saying the plan is over 100% funded after recent actuarial experience.
Representative Lillie presented Senate File 4721 and House File 4514, which would reduce employee contribution rates (from roughly 6.83% to 6%) and employer rates (from about 10.25% to 9%) for the PARA correctional plan and increase the COLA cap used in cost‑of‑living adjustments.
Doug Anderson, PARA’s executive director, told the commission the plan’s funding has improved after an experience study reduced normal cost and that positive investment returns have pushed funding ratios above 100%. "The plan remains over 100% funded," Anderson said, arguing the funding position permits modest benefit improvements and contribution reductions.
Members probed membership trends and the ratio of active members to retirees; staff said PARA has about 4,000 active members and roughly 1,800 retirees and is a relatively new and growing plan. Supporters framed the measures as balancing short‑term member relief with long‑term funding stewardship.
The commission voted to recommend the bills be incorporated into the 2026 omnibus pension bill.
