2026 Proposed PERA-Related Legislation Status

The 2026 legislative session commenced January 14 and will continue for up to 120 days.

Below you’ll find summaries and status information for proposed legislation that affects PERA and its members and retirees. We’ll update the status of each bill regularly and encourage you to subscribe to our biweekly newsletter for regular updates. Note that bill summaries describe each bill as introduced and may not reflect all recent changes.

Last updated: February 27, 2026

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House Bill 1026

Expanding Plan Options for PERA

Summary: Would make changes to PERA provisions related to purchasing service credit and PERA’s 401(k) and 457(b) plans. Under current law, PERA members can purchase service credit based on previous periods of employment; this bill would allow for limited purchases of service credit for periods of unemployment. The bill would also require all PERA-affiliated employers to offer the PERAPlus 401(k) and 457(b) plans, in both pre-tax and Roth options, to their employees.

Sponsors: Rep. Bob Marshall, Rep. Eliza Hamrick, Sen. Chris Kolker

PERA position: Support

Status: House Appropriations Committee voted February 27 to refer unamended to Committee of the Whole

House Bill 1027

BOCES Definition & Executive Director

Summary: Under current state law, certain PERA retirees are allowed to return to work for a PERA-affiliated employer without facing a reduction in their PERA benefit. This bill would add executive directors of boards of cooperative services (BOCES) to the list of approved retirees.

Sponsors: Rep. Tammy Story, Sen. Chris Kolker

PERA position: Monitor

Status: Passed

House Bill 1062

Expand Deduction for Retirement Benefits

Summary: Under current state law, individuals can deduct a portion of their pension or other annuity income from their taxable income, up to the applicable limit. This bill would remove all caps on the deduction beginning with the 2027 tax year.

Sponsors: Rep. Ron Weinberg

PERA position: Support

Status: Postponed indefinitely

House Bill 1146

Allow Approved Facility Schools Participate in Public Employees’ Retirement Association

Summary: Would allow approved facility schools—programs that serve students with behavioral issues and other special needs—to affiliate with PERA to provide retirement benefits to their employees.

Sponsors: Rep. Jacque Phillips, Rep. Eliza Hamrick, Sen. Chris Kolker, Sen. Cathy Kipp

PERA position: Support

Status: Passed third reading in the House February 25