38-818. Benefit increases
A. Effective July 1 of each year, each retired member or survivor of a retired member is entitled to receive a permanent increase in the base benefit equal to the amount determined pursuant to this section if either:
1. The retired member or survivor of a retired member was receiving benefits on or before July 31 of the two previous years.
2. The retired member or survivor of a retired member was fifty-five years of age or older on July 1 of the current year and was receiving benefits on or before July 31 of the previous year.
B. The monthly amount of a permanent increase provided by subsection A is determined as follows:
1. Determine the excess investment earnings on the actuarial present value of pensions in payment status.
2. Determine the actuarial present value, as of June 30 of the preceding calendar year, of a one-half of one per cent per month increase in the amount of each pension eligible for an increase.
3. Divide the amount determined in paragraph 1 of this subsection by the amount determined in paragraph 2 of this subsection.
4. From the quotient obtained in paragraph 3 of this subsection, drop any fraction.
5. Multiply the number obtained in paragraph 4 of this subsection by one-half of one per cent.
C. The excess investment earnings of pensions in payment status are equal to the actuarial present value of pensions in payment status multiplied by the positive difference, if any, between the total return of the plan and nine per cent. The excess investment earnings on pensions in payment status are zero if the total return of the plan is less than or equal to nine per cent.
D. As used in this section, total return and the actuarial present value of pensions in payment status are the amounts published in the annual report of the plan for the fiscal year ending June 30 of the calendar year preceding the July 1 of the increase.
E. All excess investment earnings on pensions in payment status are available for benefit increases as provided in this section. Any excess investment earnings on pensions in payment status from any year which are not used for benefit adjustments for that year are available for future benefit increases in the following years. Earnings on the excess investment earnings on pensions in payment status account balance at the rate of the total return as published in the annual report of the plan shall be added each year to the excess investment earnings on pensions in payment status account balance and shall be available for future benefit increases.
F. The maximum benefit increase under this section is limited to four per cent of the benefit being received on the preceding June 30.
Section: Previous 38-812 38-813 38-814 38-815 38-816 38-816.01 38-817 38-818 38-818.01 38-818.02 38-818.03 38-819 38-820 38-821 38-822 NextLast modified: October 13, 2016