Current through 2024-38, September 18, 2024
1.
Cost of Living Adjustments.
Subject to subsections
2,
3 and
4, the cost-of-living adjustment
shall be determined as follows.
A. Except as
provided in subsections
2,
3 and
4, whenever there is a percentage
increase in the Consumer Price Index from July
1 of the previous year to June 30 of
the current year, the Board shall automatically make an equal percentage
increase in retirement benefits, beginning in September, up to a maximum annual
increase of 2.5%.
B. If there is a
percentage decrease in the Consumer Price Index from July
1 st to June 30th, the Board 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. If the Consumer Price Index in
the subsequent year or years is not sufficient to allow for the adjustment to
be cost-neutral for the 2 years, then the adjustment needed for cost-neutrality
must continue to be applied to following years until such time as the
cost-neutrality requirement is met.
C. The Board shall determine the costs of the
adjustments under this Section and shall include those costs in the annual
valuation.
D. Cost-of-living
adjustments under this Section shall be applied to the retirement benefits of
retirees as follows:
(1) For retirees who
retire prior to September 1, 2019, a cost-of-living adjustment is applied if
the retiree has been retired for at least 12 months before the date that the
adjustment becomes payable.
(2) For
retirees who retire on or after September 1, 2019, a cost-of-living adjustment
is applied if the retiree has been retired for at least 24 months before the
date that the adjustment becomes payable. Beneficiaries of deceased retirees
shall be eligible for the cost-of-living adjustment at the same time the
deceased retiree would have become eligible.
2.
Contribution Caps. The
employer and employee contribution rates, as calculated in the aggregate across
all benefit plans in The Plan, are capped at 12.5% and 9%, respectively. If the
rates calculated by the System's actuary would exceed the caps for a particular
year, the following shall occur:
A. The
aggregated employer and employee rates will be reduced to the cap amounts, and
the Board will set individual benefit plan rates based on the System's
actuary's recommendation for allocating the reductions.
B. The cost of living adjustment calculated
under subsection 1 shall be reduced to maintain cost-neutrality, but not below
zero. If the reduction otherwise would have been below zero, then an adjustment
will be applied to contribution rates, up to the caps set forth in this
subsection, and the cost of living adjustment, but not below zero, in following
years until such time as cost-neutrality is achieved.
3. Notwithstanding subsection 1, paragraph A,
the cost-of-living adjustment for the period from September 1, 2021 through
August 31, 2022 shall be 3.5%.
4.
Notwithstanding subsection 1, paragraph A, the cost-of-living adjustment for
the period from September 1, 2022 through August 31, 2023 shall be
3.5%.
