Older public employee pension recipients would receive temporary 1.68% raises

The Public Employees Retirement Association would apply a 1.68% yearly pension increase to eligible older recipients. Eligible retired public employees and survivor pension recipients would be covered. Each increase would be calculated using the pension amount including earlier adjustments. Recipients must have turned 65 before July 1. Normally retired recipients and disability retirees must have completed at least one full calendar year in retirement before that July 1. Survivors must have received a survivor pension for at least two full calendar years, or the deceased retiree must otherwise have completed two full calendar years in retirement before that July 1. Separate 2.5% rules apply instead to normal retirees with at least 25 years of covered work and annual pensions up to $25,000, disability retirees with annual pensions up to $25,000, and normal retirees who turned 75 before July 1, 2020. The temporary increases would apply on July 1, 2026 and July 1, 2027, during fiscal years 2027 and 2028.

The state would set aside $10 million from its general fund for the Public Employees Retirement Association. The money would support 1.68% pension increases for normally retired public employees over age 65. Money left at the end of fiscal year 2028 would stay with the retirement association rather than return to the general fund. The money would be available for spending in fiscal years 2027 and 2028 to support increases beginning July 1, 2026.