Committee reports 2% COLA for LASERS retirees, estimated $234 million cost

The Senate Committee on Retirement on April 13 reported House Bill 23 favorable, a bill that would grant a 2% cost-of-living adjustment (COLA) for eligible retirees and beneficiaries of the Louisiana State Employees' Retirement System (LASERS) beginning July 1, 2026.

Trey Boudreaux, representing LASERS, told the committee the COLA would be capped at the first $81,200 of a retiree's benefit, would apply to about 47,900 individuals, and carries an estimated cost of $234,000,000. “We haven't had a COLA since 2016,” Boudreaux said, and added the proposal reflects a modest average increase of about $45 per recipient.

Boudreaux said funds for the COLA would come from LASERS' experience account; staff noted the account benefited from a strong investment return in the prior year and that LASERS staff would handle implementation if the system determines it can afford the increase. The bill text uses standard eligibility language: retirees who have received a benefit for at least one year and who have attained age 60, certain non-retiree beneficiaries who meet the age test, and disability retiree beneficiaries who meet the one-year receipt threshold.

Committee members raised no recorded objections; Senator Talbot moved to report the bill favorable and the committee approved it by unanimous consent. The bill will proceed toward floor consideration.

Implementation details, including whether LASERS' board will formally certify affordability before distributing the COLA, were described in committee as matters the system will resolve internally when the fiscal capacity is confirmed.