Governor signs legislation expanding pension COLA options for Sonoma County government retirees

Legislation sponsored by the County of Sonoma to help address the loss of purchasing power experienced by thousands of County government retirees was signed into law Sunday by Gov. Gavin Newsom.

Assembly Bill 1601, authored by Assemblymember Chris Rogers, D-Santa Rosa, gives the Sonoma County Board of Supervisors new options to design and fund cost-of-living increases for retirees.

Sonoma County has not granted a cost-of-living adjustment, or COLA, to retired employees and their beneficiaries since 2008. Over the ensuing years, inflation has eroded the purchasing power of some pensions by more than 50%. AB 1601 gives the County greater flexibility to decide whether to grant future adjustments, who would receive them, how much they would be and how they would be funded. The law does not grant a COLA or commit County funds. 

“For retirees living on a fixed pension, years of inflation make it harder to pay for their basic needs,” said Supervisor Rebecca Hermosillo, chair of the Board of Supervisors. “This law gives us better tools to consider where the need is greatest while requiring us to understand the long-term cost before we act. It gives us flexibility to develop solutions tailored to the needs of our retirees.

“I want to thank Assemblymember Rogers for taking up this issue and working with us to get AB 1601 through the Legislature,” Hermosillo said. “I’m also grateful to Supervisor Chris Coursey for championing this Board priority and taking our case to Sacramento. They helped change state law and give us new tools to address a local problem.” 

Under the previous law, the County could grant COLAs, including adjustments for retirees who had lost more than 20% of their purchasing power. But those increases had to be paid for with excess earnings from the retirement fund. After significant investment losses during the Great Recession, it was no longer feasible to fund those adjustments. 

The County has been working with the Sonoma County Employees’ Retirement Association, which administers the County’s pension system, to develop a more flexible approach. In April 2025, the Board of Supervisors directed staff to explore targeted COLAs for retirees most affected by inflation. The Board made changes to state COLA law a priority in the County’s 2026 legislative platform, and Rogers introduced AB 1601 in January. 

“Sonoma County’s retirees have not received a cost-of-living adjustment since 2008 – losing more than 50% of their purchasing power to inflation,” Rogers said. “AB 1601 is about making sure that the dedicated public servants who helped build this community can stay in this community. This bill will allow the Board of Supervisors to work with actuaries to do a targeted increase that will help the lowest-paid retirees.” 

Before the Board of Supervisors can approve any increase, an actuarial analysis must show how it would affect future annual pension costs. 

“This legislation opens the door to options we did not have before, but there is significant work ahead,” said Julie Wyne, chief executive officer of SCERA. “We will work closely with the County to evaluate the costs and long-term implications before any recommendation is developed.” 

SCERA currently provides retirement benefits to more than 6,000 retirees and beneficiaries from the County and other participating public agencies. That figure does not represent the number of people who might receive a future COLA. No COLA proposal has been developed. 

In May, the County created a pension trust to set aside money for future pension obligations and help stabilize annual pension costs. Money accumulated in the trust could be used to help fund a future COLA, if the Board ultimately decides to grant one. 

The County Executive’s Office and SCERA will now evaluate the options provided by the new law. The Board of Supervisors will receive a brief update on AB 1601 during the annual State of the Retirement System presentation on Oct. 13. No COLA recommendation will be presented at that meeting. 

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Media Contacts: 

Sonoma County Executive’s Office 
Ted Appel, Communications Specialist 
publicaffairs@sonomacounty.gov 
(707) 565-3040 

Sonoma County Employees’ Retirement Association 
Julie Wyne, Chief Executive Officer 
Julie.Wyne@sonomacounty.gov 
(707) 565-8103