MO HB2095

Amends sections 169.070 and 169.670 RSMo governing cost of living adjustments (COLAs) for retired public school employees and public education employees in Missouri

Creates a new mechanism beginning December 31, 2026, allowing the 80% cap on total COLA increases to be raised by up to 2% annually if the retirement system's investments exceed the board-adopted return rate by 2% or more

Retirees who have already reached the 80% COLA cap would receive a 2% adjustment in years when investment performance triggers an increase, but these adjustments would not be cumulative

In years when investments fail to exceed the target return rate by at least 2%, retirees at the 80% cap would receive no cost of living adjustment for that year

The percentage cap on total increases can only rise (never decrease) and applies to both the Public School Retirement System of Missouri and the Public Education Employee Retirement System of Missouri