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MarylandHB 11382026 Regular SessionHouseWALLET

State Retirement and Pension System – Cost–of–Living Adjustments – Clarification

Sponsored By: Catherine M. Forbes (Democratic)

Signed by Governor

Pensions and RetirementConsumer Price IndexEmergency BillsHealth -see also- COVID19; EnvHlth; MedCon; etc.Retirement -see also- Mandatory RetirementSafety -see also- Occupational SafetyState Employees

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 2 benefits, 0 costs, 1 mixed.

How retiree COLAs are calculated

The Board of Trustees computes your yearly COLA using the annual average CPI-U for each calendar year. It subtracts the earlier year’s CPI from the later year’s, then divides by the earlier year’s CPI. The COLA rate is capped by your plan’s COLA limit. On July 1, the dollar increase is applied as compound or simple, depending on your plan. The law defines the CPI series to use and the “cost-of-living rate” used in this math. These rules take effect April 14, 2026.

Pension allowance paid monthly for life

The law clarifies that a State Retirement and Pension “allowance” is paid in equal monthly amounts for your lifetime. You may choose an optional payment form if your plan allows it. This rule takes effect April 14, 2026.

Special CPI rule for 2026-2027 COLAs

For COLAs that take effect on July 1, 2026 and July 1, 2027, the law sets a special October 2025 CPI value. It equals the average of the September 2025 and November 2025 monthly CPI-U. Administrators use this value when computing the 2025 CPI used in the COLA rate. This rule takes effect April 14, 2026.

Sponsors & Cosponsors

Sponsor

  • Catherine M. Forbes

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 178 • No: 0

Senate vote • 4/8/2026

Third Reading Passed

Yes: 43 • No: 0 • Other: 2

House vote • 3/11/2026

Third Reading Passed

Yes: 135 • No: 0 • Other: 4

Actions Timeline

  1. Approved by the Governor - Chapter 56

    4/14/2026

  2. Returned Passed

    4/8/2026House

  3. Third Reading Passed (43-0)

    4/8/2026Senate

  4. Favorable Adopted Second Reading Passed

    4/1/2026Senate

  5. Favorable Report by Budget and Taxation

    4/1/2026Senate

  6. Referred Budget and Taxation

    3/12/2026Senate

  7. Third Reading Passed (135-0)

    3/11/2026House

  8. Second Reading Passed

    3/10/2026House

  9. Favorable Adopted

    3/10/2026House

  10. Favorable Report by Appropriations

    3/10/2026House

  11. Hearing 3/03 at 1:00 p.m.

    2/17/2026House

  12. First Reading Appropriations

    2/11/2026House

Bill Text

  • Enacted

    4/14/2026

    PDF

  • Third Reading

    3/10/2026

    PDF

  • First Reading

    2/11/2026

    PDF

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