Wyoming Legislative Committee Discusses a COLA For State Retirees

• Retired for less than five years: an extra 1%
• Retired for five to 10 years: an extra 2%
• Retired for more than 10 years: an extra 3%

The proposal also distinguishes between one-time and ongoing increases. It suggests that once a fund exceeds 80% funding, retirees would receive a one-time, non-compounding payment. Once a fund exceeds 100% funding, payments would be permanent and compounding.

The committee did not take action on the plan at the meeting. Members said they would review the concept and in future meetings. The JAC will next convene June 22-23 in Lander.

WRS assets and retiree payouts highlighted in committee presentation

The Wyoming Coalition for Health Retirement wasn’t the only group to present on COLAs and state retirements. WRS and the Legislative Service Office also presented information about the history and health of Wyoming’s pension plans. WRS Director Dave Swindell told the committee that WRS has more than $13 billion under management and pays out more than $800 million per year, with 79% of those dollars going to retirees living in Wyoming.

The last COLA for state employees came more than 17 years ago, and before 2008, COLAs were relatively common. Under current law, Wyoming’s retirement funds must be more than 100% funded before (and after) COLA is awarded—unless the Legislature passes a specific plan or bill to grant one. Swindell said three retirement accounts (Judicial Retirement Account, Volunteer Firefighters, and the Fire B fund) are funded at better than 100% and could likely withstand COLA. He added that his board will likely recommend a small COLA for at least two of those plans in the near future.

Officials discuss COLA costs and potential alternatives

The Public Employees Plan is funded at 82.5% and isn’t projected to exceed 100% funding until 2044. The Law Enforcement Fund doesn’t anticipate 100% funding until 2046. COLAs also carry a significant price tag. A 1% increase for the state’s 36,000 pensioners would cost $82 million. As a result, the discussion may focus on alternatives such as a 13th check each year or a staggered COLA for those who have been retired the longest.

Swindell said that if the state Legislature wanted to recommend a 1% COLA for all Wyoming State retirees, it would cost around $82 million. He noted there are many ways to provide a COLA—from an across-the-board increase to staggered increases for those who have been retired the longest, to the concept of a 13th check. He said a 13th check would cost around $8 million and offer an average benefit enhancement of $221, annually. He added that the rule of thumb is that a regular COLA costs about 10 times as much as a 13th check.

How COLA is funded—and where the money comes from—could be central to the debate. Some COLAs around the country are funded by retirement system proceeds, while others are funded by legislative appropriations. Withdrawing funds from the retirement system can delay reaching 100% funding. When Senator Tim French (R-Park) asked Swindell what it would take for the Legislature to fully fund the public employees fund, Swindell responded: $2.1 billion. The committee also discussed whether investing savings into the state’s retirement system could reduce the cost of running the state government.

Legislative staff describe how other states handle COLAs

According to Polly Scott of the Wyoming Legislative Service Office, most other states provide some form of COLA. Some COLAs are ad hoc, while others are automatic. Some plans may provide a smaller benefit up front and then apply a COLA over the lifetime of the retirement plan. Scott added that investment returns over the last 10 years have consistently outpaced actuarial predictions. After legislative changes in 2012, the WRS board can no longer grant COLAs to retirees without legislative action, and COLAs would no longer be provided if retirement plans are less than 100% funded.

AARP testimony and policy on cost-of-living adjustments

AARP Wyoming’s Associate State Director for Communications and State Advocacy, Tom Lacock, testified in favor of a COLA for state employees. He said that since the last COLA in 2007, overall inflation has increased by approximately 53%. In practical terms, he said, everyday necessities take up more of a retiree’s monthly check than they once did. Gas that cost about $3.25 a gallon in 2007 now costs more than $4. Name-brand medication has risen over 150% since the last COLA for state retirees. A Medicare supplement policy that averaged around $100 a month in 2008 now commonly exceeds $300. Those costs are not discretionary—and they are growing faster than incomes.

“Sixteen years is a long time for anyone to go without a raise—but for retirees living on fixed incomes, it is especially consequential,” said Lacock. “When retirees are asked to pay 2026 bills using 2007 dollars, financial pressure is inevitable.”

AARP policy is clear and consistent: well-designed public retirement systems should include pre‑funded, predictable cost‑of‑living adjustments that protect retirees from inflation and preserve the value of benefits over time. COLAs are not bonuses; they are a mechanism to maintain purchasing power and financial stability for people who can no longer offset rising costs by taking on additional work.