2026 Legislative Changes
The 2026 legislative session ended on May 18, 2026. Changes to PERA plans are listed below.
Police & Fire Plan Changes
Starting January 1, 2027, the waiting period for Police & Fire Plan members to receive their first full post-retirement annual increase will decrease from 19–30 months to 7–18 months. This waiting period is consistent with the Coordinated and Correctional Plans.
If you are currently in the waiting period of 19–30 months, you will automatically move to the waiting period of 7–18 months on January 1, 2027.
Use the table below to determine your first prorated annual increase. The Police & Fire Plan full annual increase is 1%.
|
Benefit Effective Date |
Schedule |
Fraction of Increase |
Percentage of Increase |
|---|---|---|---|
|
July 1 |
18 months |
12/12 |
100% |
|
August 1 |
17 months |
11/12 |
91.7% |
|
September 1 |
16 months |
10/12 |
83.3% |
|
October 1 |
15 months |
9/12 |
75% |
|
November 1 |
14 months |
8/12 |
66.7% |
|
December 1 |
13 months |
7/12 |
58.3% |
|
January 1 |
12 months |
6/12 |
50% |
|
February 1 |
11 months |
5/12 |
41.7% |
|
March 1 |
10 months |
4/12 |
33.3% |
|
April 1 |
9 months |
3/12 |
25% |
|
May 1 |
8 months |
2/12 |
16.7% |
|
June 1 |
7 months |
1/12 |
8.3% |
The reduced waiting period is funded by $8 million in direct state aid each year until 2042.
Correctional Plan Changes
Annual Increases
Starting January 1, 2027, the post-retirement annual increase maximum will increase from 2.5% to 3%.
Contribution Rates
Starting January 1, 2027,
- Member contributions will decrease from 6.83% to 6%.
- Employer contributions will decrease from 10.25% to 9%.
The new contribution rates maintain the 40/60 split between member and employer contributions.
Rehired Members
Starting January 1, 2027, employers must contribute to PERA if they rehire retired members, Phased Retirement Option (PRO) participants, or members working after full retirement age.
If you are rehired after starting your PERA benefit, you will not contribute to PERA; only your employer will contribute.
If you are rehired but have not yet started your PERA benefit, both you and your employer will contribute to PERA.