HB 2545 Summary

• Repeals sections 38-818, 38-818.01, 38-818.02, 38-818.03, and 38-819 of Arizona Revised Statutes.

• Adds new section 38-818.04 establishing a compounding cost-of-living adjustment (COLA) for retired members and survivors based on the annual percentage change in the metropolitan Phoenix-Mesa consumer price index, capped at 2 percent annually.

• COLA payments begin one year after retirement, with the first-year adjustment prorated based on the retirement date, and subsequent adjustments made each July 1.

• Requires the plan actuary to include the projected cost of the COLA in calculations of normal cost and accrued liability.

• All changes are conditional and do not take effect unless the Arizona Constitution is amended as prescribed in House Concurrent Resolution 2032 and approved by voters at the next general election.