An Act To Raise The Cap On Retirement Benefits For Certain State Employees And Teachers To Which A Cost-Of-Living Adjustment Is Made

This bill raises the cap on retirement benefits eligible for automatic annual cost-of-living adjustments (COLA) from $24,186.25 to $40,000, effective July 1, 2026. It directly affects retired state employees and teachers who retired on or before June 30, 2011, or their beneficiaries. The key provision increases the maximum benefit amount subject to COLA - automatically adjusted each year based on the Consumer Price Index - without requiring separate legislative action. This change applies only to benefits up to the new $40,000 threshold, which will be adjusted annually for inflation. The bill does not alter the COLA calculation method, only the maximum amount covered.