Raise cost of living threshold for retired municipal police officers

HB 5326 increases the amount of pension income subject to annual cost-of-living adjustments (COLA) for retired municipal police officers, firefighters, and water/sewage system employees from $15,000 to $30,000 per year. Currently, only the first $15,000 of a retiree’s pension was adjusted for inflation each year; this change extends the COLA calculation to the first $30,000. The bill does not alter the 4% annual COLA cap or the two-year waiting period for new retirees. This policy change directly affects eligible retired municipal public safety and utility workers by providing broader inflation protection on their pension benefits.