State pension increase bill passes House, heads to Senate

Legislation would give retirees over 60 a 2% cost of living adjustment on first $81,000 of annual pension

Apr. 1, 2026 at 10:49pm

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A bill that would provide a cost-of-living adjustment to state retirees in Louisiana passed the House 93-2 and is now headed to the Senate. The legislation, House Bill 23, would give state retirees over 60 a 2% increase on the first $81,000 they receive from their pension every year.

Why it matters

Many state retirees have struggled with rising costs of living since their last pension increase, which for some has been over a decade ago. The proposed 2% adjustment would provide some financial relief, though retirees say it still falls short of what is needed.

The details

The $250 million cost of the pension increase would be covered by the Louisiana State Employees' Retirement System's investment returns, so it would not require any additional state funding. The bill was passed overwhelmingly in the House, and the chair of the House Appropriations Committee believes it has a good chance of passing the Senate as well.

  • The bill passed the House on April 1, 2026.
  • The bill now heads to the Louisiana State Senate.

The players

Rep. Tony Bacala

The representative who introduced House Bill 23 to provide the pension increase.

Carl Grotten

A retired Department of Transportation employee of over 30 years who says prices have risen significantly since his last pension increase 13 years ago.

Rep. Jack McFarland

The chair of the House Appropriations Committee, who says the bill has a good chance of passing the Senate since the state won't have to spend any money on it.

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What they’re saying

“Well, just to give you an example, I gassed up my car yesterday, almost $53 to get it from a quarter tank back up to full.”

— Carl Grotten, Retired Department of Transportation employee

“It'll help some, but nowhere near where it should be.”

— Carl Grotten, Retired Department of Transportation employee

“The $250 million that it would cost is covered within the retirement system itself, so these are dollars they have already made, won't cost the general fund anything, and the retirees get a pay increase — it's a win-win.”

— Rep. Jack McFarland, Chair of the House Appropriations Committee

What’s next

The bill now heads to the Louisiana State Senate, where it is expected to have a good chance of passing since it does not require any additional state funding.

The takeaway

This pension increase bill provides much-needed financial relief for Louisiana state retirees who have struggled with rising costs of living, while also avoiding any burden on the state's general fund. Its bipartisan support in the House suggests it has a strong chance of becoming law.