Committee focuses on ad hoc Plan 1 COLA and asks staff to draft options

Senator Conway led discussion on options to provide relief for Plan 1 members, emphasizing an immediate ad hoc COLA for the next biennium. "I think probably the most important recommendation we need to do is for a cola for the next biennium. In other words, an ad hoc cola," Conway said, urging the committee to keep that issue central while staff explores budget-language options.

Staff member Melinda Oslakson said the draft interim work plan currently pencils in a June introductory briefing on Plan 1 COLA and recommended moving the OSA annual update to July. Members agreed to ask staff to prepare potential language and to present an introductory briefing in June with fuller discussion in July.

Retiree representatives at the table urged both short-term and long-term solutions: "There's the long term big picture need for ongoing relief ... and there's also the need for short term, immediate relief next year," said a retiree representative. Committee members discussed whether to keep caps used in prior ad hoc COLAs and asked staff to model alternatives.

Why it matters: Plan 1 members have repeatedly asked for relief, and members signaled the committee will pursue both an immediate ad hoc COLA and longer-term legislative options while probing budget riders to ensure recurring review of COLA needs.

Next steps: Staff will prepare an introductory presentation for June, draft options (including cap adjustments) and potential budget language, and bring a fuller recommendation to the July meeting.