SB 1421 - Current law provides that retired members of the Public School Retirement System ("PSRS") and the Public Education Employee Retirement System ("PEERS") may receive yearly cost of living adjustments on monthly retirement allowances, but the total of such cost of living adjustments shall not exceed 80% of a member's original monthly retirement allowance. The 80% limitation shall be subject to annual increases approved by the Board of Trustees every December 31s, except such increases to the limitation shall not exceed 1%. Additionally, if the investments of the system earn 2% or greater returns than the investment return rate adopted by the Board, the limitation on the total cost of living adjustments shall be increased by 1%. However, the cost of living adjustments shall not exceed 100% of a member's original monthly retirement allowance.KATIE O'BRIEN