SB 1779 MO
SB 1779 - Current law provides that retired members of the Public School Retirement System ("PSRS") and the Public Education Employee Retirement System ("PEERS") may receive yearly cost of living adjustments on monthly retirement allowances, but the total of the increases granted to a retired member or the beneficiary may not exceed 80% of a member's retirement allowance established at retirement or as previously adjusted. This act provides that the limitation on the total of the increases granted to a retired member or the beneficiary shall be subject to annual increases approved by the Board of Trustees of PSRS/PEERS ("Board") every December 31st, except such increases to the limitation shall not exceed 2% and shall depend on the performance of the system's investments. If the system's investments earn 2% or greater returns in excess of the investment return rate adopted by the Board, then the percentage of retirement allowance for the total of increases granted shall be increased by 2%. The total increases granted to a retired member or beneficiary shall not exceed 80% of the retirement allowance established at retirement or as previously adjusted. If a retired member or beneficiary has already reached the 80% cap, such retired member or beneficiary shall be granted a 2% cost of living adjustment for that year unless the system's investments fail to earn at least 2% of returns in excess of the investment return rate adopted by the Board, in which case the member shall not get a cost of living increase. This 2% cost of living increase shall not be cumulative. This act is identical to HB 2095 (2026) and is similar to SB 709 (2025), HB 329 (2025), and SB 1421 (2024). KATIE O'BRIEN
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Summary
This Act modifies the cost of living adjustment (COLA) provisions for retired members of the Missouri Public School Retirement System (PSRS) and Public Education Employee Retirement System (PEERS) by making the 80% cap on total COLA increases subject to annual adjustments based on system investment performance. The Board of Trustees may increase the 80% limitation by up to 2% each December 31st if the system's investments earn returns of 2% or greater in excess of the Board's adopted investment return rate. For retired members or beneficiaries who have already reached the 80% cap, the Act provides for a 2% annual COLA if system investments meet the 2% performance threshold; if investments fall short, those members at the cap receive no COLA that year. The 2% COLA for capped members is non-cumulative and does not permanently increase the total allowance.
AI-generated plain-language summary of the bill (from the OpenStates abstract — no full text available yet) — neutral, and may be imperfect.
Official abstract
SB 1779 - Current law provides that retired members of the Public School Retirement System ("PSRS") and the Public Education Employee Retirement System ("PEERS") may receive yearly cost of living adjustments on monthly retirement allowances, but the total of the increases granted to a retired member or the beneficiary may not exceed 80% of a member's retirement allowance established at retirement or as previously adjusted. This act provides that the limitation on the total of the increases granted to a retired member or the beneficiary shall be subject to annual increases approved by the Board of Trustees of PSRS/PEERS ("Board") every December 31st, except such increases to the limitation shall not exceed 2% and shall depend on the performance of the system's investments. If the system's investments earn 2% or greater returns in excess of the investment return rate adopted by the Board, then the percentage of retirement allowance for the total of increases granted shall be increased by 2%. The total increases granted to a retired member or beneficiary shall not exceed 80% of the retirement allowance established at retirement or as previously adjusted. If a retired member or beneficiary has already reached the 80% cap, such retired member or beneficiary shall be granted a 2% cost of living adjustment for that year unless the system's investments fail to earn at least 2% of returns in excess of the investment return rate adopted by the Board, in which case the member shall not get a cost of living increase. This 2% cost of living increase shall not be cumulative. This act is identical to HB 2095 (2026) and is similar to SB 709 (2025), HB 329 (2025), and SB 1421 (2024). KATIE O'BRIEN
Sponsor (1)
- Henderson, Mike Republican · primary
Action history (2)
- May 7, 2026 Second Read and Referred S Local Government, Elections and Pensions Committee · upper
- Feb 26, 2026 S First Read · upper
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