Special Risk COLA floor

CS/SB 7028 proposed an alternative cost-of-living adjustment for eligible Special Risk Class retirees in the FRS Pension Plan. As proposed: a minimum 1.5% annual COLA each July, applied beginning at least five years after retirement, for retirees with at least 72 calendar months of Special Risk service (if initially enrolled in the FRS before July 1, 2011) or 96 months (if initially enrolled on or after July 1, 2011).

The Senate version was laid on the table on February 20, 2026 in favor of HB 5205, with the COLA provision folded into HB 5205 via amendment. HB 5205 was placed in Appropriations Conference Committee on February 23, 2026. The 2026 regular session ended March 13, 2026 without enacting the budget or its conforming bills. A special session is scheduled for May 12–29, 2026 to resolve the budget; HB 5205 is expected to be addressed during that window.

Effective date if enacted: July 1, 2026.

What this would change in PensionForge's projections: For eligible Special Risk Class retirees whose prorated COLA under current law would fall below 1.5%, the engine would apply 1.5% as the minimum. Members whose prorated COLA already meets or exceeds 1.5% under current law would see no change. Members initially enrolled in the FRS on or after July 1, 2011 with fewer than 96 months of Special Risk service would not be eligible for the floor and would continue under the current-law formula (no COLA).

Current engine behavior: PensionForge's projections currently apply the prorated COLA formula under existing law. The proposed minimum is not reflected in current projections. We will update the engine if the provision is enacted.