Part 20: STATE RETIREMENT SYSTEM (HEADING: PL 1985, C. 801, §5 (NEW))
Chapter 425: PARTICIPATING LOCAL DISTRICTS HEADING: PL 1985, C. 801, §5 (NEW)
Subchapter 5: BENEFITS HEADING: PL 1985, C. 801, §5 (NEW)
Article 1: GENERAL PROVISIONS HEADING: PL 1985, C. 801, §5 (NEW)
§18407. Cost-of-living adjustment to retirement benefit
Cost-of-living adjustments to the retirement benefits being paid to retired participating local district employees shall be
governed as follows. [1985, c. 801, §§ 5, 7 (NEW).]
1.Definitions. As used in this section, unless the context otherwise indicates, the following terms have the following meanings.
A. "Covered district" means a participating local district that provides coverage under the United States Social Security Act
for its employees. [1985, c. 801, §§ 5, 7 (NEW).]
B. "Noncovered district" means a participating local district that does not provide coverage by the United States Social Security
System for its employees. [1985, c. 801, §§ 5, 7 (NEW).]
[
1985, c. 801, §§ 5, 7 (NEW)
.]
2.Noncovered districts. Notwithstanding section 18202 and except as provided in this subsection, subsections 3 to 5 apply to all retired employees
of noncovered districts and to beneficiaries of those retired employees.
A. A noncovered district that has withdrawn from participation in the Participating Local District Retirement Program on or before June 30, 1987, under section 18203 is not required to provide cost-of-living adjustments for its retired employees
or their beneficiaries. [2007, c. 491, §236 (AMD).]
B. A noncovered district which, on or after September 19, 1985, engages in collective bargaining or has in force a collective
bargaining agreement under Title 26, chapter 9-A, with some or all of the district's members is not required by this section
to provide cost-of-living adjustments for its retired employees or their beneficiaries. When the district subsequently agrees
through the collective bargaining process to provide the cost-of-living adjustment under this section, the adjustment shall
apply to all the district's retired employees or their beneficiaries receiving retirement allowances. [1985, c. 801, §§ 5, 7 (NEW).]
[
2007, c. 491, §236 (AMD)
.]
3.Covered districts. A covered district may provide cost-of-living adjustments for its retired employees or their beneficiaries by application
to the board of trustees supplying the necessary information. Upon acceptance of such a plan, the district shall supply a
certified copy of its action and a statement of agreement of payment and costs.
[
1985, c. 801, §§ 5, 7 (NEW)
.]
4.Determination of adjustment. The cost-of-living adjustment shall be determined as follows.
A. Except as provided in paragraph A-1, whenever there is a percentage change in the Consumer Price Index from July 1st to June 30th, the board shall automatically make an
equal percentage increase or decrease in retirement benefits, beginning in September, up to a maximum annual increase or decrease
of 4%. [2009, c. 433, §5 (AMD).]
A-1. If there is a percentage decrease in the Consumer Price Index from July 1st to June 30th, the board as provided in paragraph
A shall set the percentage change at 0% for that September. The adjustment for the following year must be set based on the
actuarially compounded Consumer Price Index for both years in a cost-neutral manner. [2009, c. 433, §6 (NEW).]
B. Whenever the annual percentage change in the Consumer Price Index from July 1st to June 30th exceeds 4%, the board shall
make whatever adjustments in the retirement benefits are necessary to reflect an annual increase or decrease of 4% and shall
report that adjustment and the actual increase or decrease in the Consumer Price Index to the Legislature by February 1st of the following year. [2007, c. 249, §30 (AMD).]
C. Notwithstanding any other provision of this section, the amount of annual retirement benefit otherwise payable under this
Part may not be less than the retired member received on the effective date of his retirement or on July 1, 1977, whichever
amount is greater. [1985, c. 801, §§ 5, 7 (NEW).]
[
2009, c. 433, §§5, 6 (AMD)
.]
5.Cost. The board shall determine the costs of the adjustments under this section and shall include those costs in the annual valuation.
[
1985, c. 801, §§ 5, 7 (NEW)
.]
6.Eligibility. Cost-of-living adjustments under this section must be applied to the retirement benefits of all retirees who have been retired
for at least 6 months before the date that the adjustment becomes payable. Beneficiaries of deceased retirees and members
are eligible for the cost-of-living adjustment at the same time the deceased retiree would have become eligible.
[
1993, c. 595, §10 (AMD)
.]
SECTION HISTORY
1985, c. 801, §§5,7 (NEW).
1993, c. 595, §10 (AMD).
2007, c. 249, §30 (AMD).
2007, c. 491, §236 (AMD).
2009, c. 433, §§5, 6 (AMD).
Data for this page extracted on 10/28/2009 03:36:44.