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HB 1138

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

2026 Regular Session Introduced by Cathi Forbes

Maryland HB 1138 clarifies cost-of-living adjustment calculations for state pensions, affecting benefit amounts for thousands of retirees and state fiscal obligations.

Approved by the Governor - Chapter 56
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Bill Summary · HB 1138

Legislative bill overview

HB 1138 clarifies how cost-of-living adjustments (COLAs) are calculated and applied to Maryland's state retirement and pension system benefits. The bill addresses ambiguities in existing statute regarding COLA eligibility, calculation methods, and implementation timing for retirees and beneficiaries.

Why is this important

State pension COLAs directly affect the purchasing power of thousands of Maryland retirees and their families. Clarifications in COLA policy can significantly impact long-term benefit amounts and system costs, affecting both retirees' financial security and the state's budgetary obligations for decades.

Potential points of contention

  • Retroactivity questions: Whether clarifications apply only prospectively or if they affect past COLA calculations, potentially creating financial liability or disputes
  • Equity concerns: Different retiree cohorts may experience varying impacts depending on when they retired and how new rules apply to their benefits
  • Fiscal impact: Clarifying COLA provisions could increase or decrease long-term pension obligations, affecting state budget projections and funding requirements

Compiled from official sources — confirm details with the bill’s official record.

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