Understanding Retirement Benefits for State Legislators

Introduction

For most public employees, the type of retirement plan that is provided and requirements for participating are largely consistent across states. Retirement benefits available to state legislators, by contrast, vary widely. In particular, the type of retirement plan that is available to legislators and the standards for legislator participation differ markedly relative to other groups of public employees.

  • Participation: For nearly all full-time public employees, participation in an employer-sponsored retirement benefit is mandatory. By contrast, 10 states provide no retirement benefit for their legislators, and of the 40 states that do provide a retirement benefit, 20 allow their legislators to opt out of participating.

  • Plan Type: Where a traditional pension (i.e., a defined benefit plan) or a hybrid are the predominant plan types for most public employees, as shown in the chart below, of the 40 states that offer a retirement benefit to legislators, 18 offer a DB plan, six offer a hybrid plan, and eight offer a defined contribution plan. Eight others offer a choice of either a DB or DC plan or a hybrid or a DC plan.

Date published

April 2025, Updated October 2025

Contact

Keith Brainard, Research Director
Alex Brown, Research Manager
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What's New at NASRA: Updated Cost of Living Issue Brief

Cost-of-Living Adjustments (COLAs) play a significant role in public pensions. They help retirees keep up with rising prices, but they also add costs to pension plans. Policymakers and plan sponsors are tasked with balancing three things: benefits adequacy, plan sustainability, and affordability for members and plan sponsors.
The recent increase in inflation caused many policymakers and, in some cases pension trustees, to review how benefits are designed and paid for, including the way COLAs are granted and funded. NASRA’s recently updated issue brief on the lates trends in COLAs is available in the NASRA Research Center.