Rep. Haley proposes occasional 2% COLA for PSRS retirees capped at 80% when investment returns allow
March 04, 2026 | 2026 Legislature MO, Missouri
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Representative Willard Haley presented House Bill 20‑95, proposing a narrow, temporary COLA that would give PSRS retirees who have reached the statutory 80% COLA cap a one‑year, non‑cumulative 2% increase in years when the system’s investment returns exceed a specified threshold.
Haley said the change is intended to help very long‑retired members without creating a recurring liability. "It just, gives them a 2% bonus occasionally," he told the committee, emphasizing the payment would not compound and would disappear in years when returns fall short.
Maria Walden of the Missouri Retired Teachers Association testified in support, saying the bill targets members often in their mid‑80s and that MRTA helped add guardrails around funding and CPI requirements. "These people are at their most vulnerable," Walden said, noting last year’s counts of capped retirees at about 2,800 (PSRS) and 772 (PEERS).
Mike Moorefield, chief counsel for PSRS, spoke for informational purposes and described how the proposal would operate under PSRS’ investment and smoothing policies. He said PSRS holds roughly $66 billion in assets and is about 89.1% funded. Moorefield told the committee the provision would function like a "thirteenth paycheck" when return thresholds are met and estimated a fiscal cost of approximately $32 million for PSRS and a little under $1 million for PEERS if the language were enacted.
Committee members pressed on risk and thresholds. Representative Bob Bromley and others asked whether paying the additional 2% in good years could harm long‑term funding; Bromley warned that at current funding levels members might worry about future contribution increases. Haley and PSRS staff responded that the payment is strictly conditional on investment results and is not cumulative, and Moorefield recommended clear drafting so administration and courts would understand the mechanics.
The committee concluded the hearing without a vote on HB 20‑95 and proceeded to other items on the agenda.
Haley said the change is intended to help very long‑retired members without creating a recurring liability. "It just, gives them a 2% bonus occasionally," he told the committee, emphasizing the payment would not compound and would disappear in years when returns fall short.
Maria Walden of the Missouri Retired Teachers Association testified in support, saying the bill targets members often in their mid‑80s and that MRTA helped add guardrails around funding and CPI requirements. "These people are at their most vulnerable," Walden said, noting last year’s counts of capped retirees at about 2,800 (PSRS) and 772 (PEERS).
Mike Moorefield, chief counsel for PSRS, spoke for informational purposes and described how the proposal would operate under PSRS’ investment and smoothing policies. He said PSRS holds roughly $66 billion in assets and is about 89.1% funded. Moorefield told the committee the provision would function like a "thirteenth paycheck" when return thresholds are met and estimated a fiscal cost of approximately $32 million for PSRS and a little under $1 million for PEERS if the language were enacted.
Committee members pressed on risk and thresholds. Representative Bob Bromley and others asked whether paying the additional 2% in good years could harm long‑term funding; Bromley warned that at current funding levels members might worry about future contribution increases. Haley and PSRS staff responded that the payment is strictly conditional on investment results and is not cumulative, and Moorefield recommended clear drafting so administration and courts would understand the mechanics.
The committee concluded the hearing without a vote on HB 20‑95 and proceeded to other items on the agenda.
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