SB 172 Summary

• Allows the boards of five state retirement systems (Firefighters Pension and Retirement System, Police Pension and Retirement System, Law Enforcement Retirement System, Teachers' Retirement System, and Public Employees Retirement System) to approve two percent (2%) cost-of-living adjustments for beneficiaries who have received benefits for one or more years.

• Cost-of-living adjustments can only be approved when the system's funded ratio exceeds eighty percent (80%) based on the latest annual actuarial valuation, maintained on a rolling three-year average.

• A cost-of-living adjustment cannot be granted if it would cause the system's funding ratio to drop below the percentage that authorized the adjustment.

• Subsequent cost-of-living adjustments may be approved each time the system's funded ratio increases by five percent (5%) from the percentage that authorized the previous adjustment.

• Updates statutory language for gender neutrality and makes conforming changes to references across the affected retirement system statutes.