Finance Committee advances bipartisan 2026 omnibus pension bill with benefit improvements and targeted appropriations

The Senate Finance Committee on May 12 recommended passage of the 2026 omnibus pension bill, a bipartisan measure the sponsor described as delivering benefit improvements for police, firefighters, teachers and others covered by state pension plans.

Senator Friend, presenting the bill, said the package includes over $12 million in base funding to improve pensions, plus a one-time $3 million appropriation to help probation officers and 911 telecommunicators with employer contribution impacts. Mr. Erickson reviewed a spreadsheet showing multiple change items and fiscal implications, including reallocation of a State Board of Investment general-fund appropriation (a reduction of about $139,000 annually) and various direct state aids tied to benefit improvements.

Sponsor remarks emphasized recruitment and earlier retirements by improving benefit timing for public employees and noted unanimous LCPR (Legislative Commission on Pensions and Retirement) adoption of the package. Committee members discussed letters received from county and local stakeholders, generational equity concerns, and how one-time funding offsets employer costs.

Senator Friend moved the omnibus pension bill, as amended, to be recommended to pass; the chair declared the motion prevailed on a voice vote and the bill was forwarded to the next stage.

Next steps: The omnibus pension bill will proceed to the Senate floor for additional consideration.