ARSEA/APEAL’s legislation that will allow state and local governments to once again award cost-of-living adjustments (COLAs) was officially introduced in the House this week by State Rep. Randall Shedd (R - Baileyton), who is a member of our association. 

House Bill 437 is a “pay-as-you-go” proposal that requires the Legislature to fund the annual cost of COLAs upfront, which avoids the RSA’s concern about placing additional stress on its finances.  In essence, retiree COLAs - whether state or local - would be considered in their annual budget processes. 

While the measure does not authorize a COLA this year, it does create the mechanism that will allow benefit increases to be funded in future years come.