Reinstates annual cost of living adjustment for teachers and state employees who retired after July 1, 2012, for retirement plan year 2026.

The bill reinstates the annual cost of living adjustment (COLA) for all teachers and state employees who retired after July 1, 2012, for retirement plan year 2026. It also provides a one-time COLA of 2.89% for municipal employees. Additionally, the bill exempts public pension benefits from the state personal income tax. The provisions are set to take effect upon passage.

Reinstates annual cost of living adjustment for teachers and state employees who retired after July 1, 2012, for retirement plan year 2026.

The bill reinstates the annual cost of living adjustment (COLA) for all teachers and state employees who retired after July 1, 2012, for retirement plan year 2026. It also provides a one-time COLA of 2.89% for municipal employees. Additionally, the bill exempts public pension benefits from the state personal income tax. The provisions are set to take effect upon passage.