Session News #18: Update on COLA bill
Jun 8, 2015House Bill 42 (Rep. Jones) was amended and passed in the Senate Finance Committee and on the Senate Floor. In its current form, the bill would authorize a COLA of up to 1.5% for eligible TRSL retirees and beneficiaries, starting July 1, 2016.
The date change for the COLA took into account testimony from the Governor’s Office that paying two COLAs in a row would cause concerns for the State’s bond rating agencies. Eligible TRSL retirees and beneficiaries received a 1.5% COLA in 2014.
The 2016 timing would be consistent with the reforms enacted last legislative session which only authorize a COLA every other year until the system is at least 85% funded. The amendments also make changes that positively impact the long-term funded status of the system.
HB 42 will next go back to the House of Representatives for concurrence in the Senate amendments.
House Bill 800 (Rep. Fannin), which would appropriate approximately $6.2 million in FY 2013-14 surplus or nonrecurring funds to TRSL for the UAL, passed the full Senate today.
House Bill 562 (Rep. Havard), which would require certain nonrecurring funds to be applied to the IUAL of TRSL and LASERS, was voluntarily deferred by the Senate Finance Committee last Friday.
To view a comprehensive list of all legislation affecting TRSL this session, visit the Legislation page of TRSL’s website.