In November of 2024, the Board granted supplemental benefit payments to retirees and reduced retirement eligibility to 33 years of service for a three-year period. The supplemental benefit payment ($302 million) was deducted from the budget, leaving just over $2 billion available for benefit changes. The actuaries cautioned that the budget figure is the maximum amount allowable without impairing the fiscal integrity of the system; it may be prudent to spend less.

Board member Pat Davidson made a motion to grant a 1.5% COLA for fiscal year 2026 and make the following changes to retirement eligibility:

• For active members retiring between June 1, 2025, and May 1, 2030, the required years of service for an unreduced retirement benefit is now 32 yearsfrom 33 years at any age. Eligibility for a reduced retirement benefit is now 27 years of service from 28 years at any age.
• For active members retiring between June 1, 2030, and May 1, 2032, eligibility for unreduced benefits will be temporarily adjusted to 33 years of service. Eligibility for reduced benefits will be 28 years of service.
• Eligibility for unreduced benefits will return to a minimum of 34 years of service credit (29 years for reduced retirement benefits) effective June 1, 2032. 

Some board members expressed concern that the budget was based on the last actuarial valuation in June of 2024 and that recent market downturns and volatility are reasons to be cautious. Others expressed concern that the change in eligibility so close to the end of the school year does not give members or districts sufficient time to plan and that making a temporary change with a claw back to 34 years is going backward and creating eligibility tiers. Davidson countered that the change gives members options, and the goal is to make the reductions permanent as funding allows. The motion passed 6-4.