OPRI prepares to introduce bills for 2027

Two issues that have followed PERS retirees through recent legislative sessions are headed back to the Capitol in 2027: the cost of retiree health insurance and the impact of inflation on retirement benefits. OPRI is preparing to reintroduce legislation addressing both.

Raising the RHIA subsidy

SB 847-A (2025) would increase the PERS Health Insurance Program’s (PHIP) Retirement Health Insurance Account (RHIA) subsidy from $60 to $100 per month. The $60 subsidy has remained unchanged since the program was established in 1988.

The bill also would extend RHIA eligibility to OPSRP retirees, who are currently excluded from the program.

An actuarial analysis by Milliman found that the changes could increase the RHIA fund’s accrued liability by approximately $320 million to $600 million, depending on participation. The proposal would also increase employer contributions to the fund.

Addressing the PERS COLA

OPRI also plans to revisit HB 2822 (2023), which would provide a one-time payment equivalent to an 8% COLA for low- and middle-income PERS retirees.

The bill did not advance in 2023. OPRI plans to bring the issue back to legislators as retirees continue to face the effects of inflation and rising costs on fixed incomes.