AN ACT relating to a cost-of-living increase to the retirement benefits for retired state employees, making an appropriation therefor, and declaring an emergency.

Appropriate $221.4 million, $18.7 million, and $16 million in fiscal year 2026-2027 for the Kentucky Employees Retirement System (KERS) nonhazardous pension fund, the KERS hazardous pension fund, and the State Police Retirement System pension fund, respectively, to provide a one-time 2% COLA effective July 1, 2026; APPROPRIATION; EMERGENCY.

Introduced: January 21, 2026

Last action: January 29, 2026

To State Government (H)

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This bill would set aside a total of about $256 million in state funds to give retired state employees a one-time 2% cost-of-living increase to their pension payments, starting July 1, 2026. The increase would apply to retirees in the general state employee pension system, as well as those in hazardous-duty and State Police retirement plans. The emergency designation means it would take effect immediately if signed into law. Who it may affect: retired state government employees, retired Kentucky State Police officers, and others receiving benefits from the covered pension systems.

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