Spring 2026 Legislative Update
This week is spring break for the Missouri Legislature. Since the 2026 session began on Jan. 7, state legislators have filed more than 3,100 bills and resolutions.
The Public School and Education Employee Retirement Systems of Missouri (PSRS/PEERS) is tracking more than 100 bills, including legislation that would directly affect member benefits and employer operations.
For a bill to become law, it must pass both the Missouri House and Senate before moving to Governor Kehoe for his consideration. Governor Kehoe can sign the bill into law, veto it, or take no action. If the governor does not act by July 14, 2026, the bill will become law without his signature.
What to Watch
The following is an overview of how key bills could impact the Systems and our members.
PEERS Critical Shortage Expansion (HB 2091)
This House bill expands the types and number of positions districts may fill using retired PEERS members under Critical Shortage Employment rules. It would broaden employment options for retirees while maintaining employer contribution requirements.
COLA Cap Changes (HB 2095)
This House bill proposes updates to the PSRS/PEERS COLA cap. Under current law, the COLA cap is fixed at 80% of a member’s original benefit. HB 2095 would provide a one-time 2% increase for retirees who have a COLA cap on their benefit, if the System’s assumed rate of return is exceeded by 2% and retirees receive a COLA increase in a given year. The increase is not cumulative.
PSRS Death Benefit Increase (HB 2144)
This House bill raises the one‑time PSRS retiree death benefit to $10,000 for deaths occurring on or after Aug. 28, 2026.
PSRS Critical Shortage and Working After Retirement Changes (HB 2396)
This House bill would allow districts to hire PSRS retirees without first declaring a critical shortage. It also:
- Removes limitations on the number of full‑time positions that may be filled this way
- Requires employer contributions
- Maintains that retirees continue receiving benefits without accruing new service
- Permits districts to reduce the salary paid by a percentage equivalent to an active teacher’s retirement contribution percentage
SLPs Recognized as PSRS “Teachers” (HB 3079)
This House bill designates school speech ‑language pathologists as “teachers” for PSRS membership, with DESE issuing the necessary certification.
Higher Multiplier for PSRS 33+ Years (SB 1258)
This Senate bill increases the PSRS multiplier to 2.6% for members retiring with 33+ years of service.
What Comes Next
When lawmakers return from spring break, attention will intensify around priority bills and budget deadlines. Key dates include:
- Friday, May 8 – Constitutional budget deadline
- Friday, May 15 – Last day of the 2026 legislative session
- Tuesday, July 14 – Deadline for Governor Kehoe to act upon legislation
- Friday, Aug. 28 – Bills become law
- Wednesday, Sept. 16 – Veto session
At the time of this post, none of these bills has passed out of both chambers to become law. The status of these bills can change daily. PSRS/PEERS will share any developments that may impact the Retirement Systems or our members on this website, as well as in member newsletters and via email.