4 §1358. Cost-of-living and other adjustments

Title 4: JUDICIARY

Chapter 27: JUDICIAL RETIREMENT ON OR AFTER DECEMBER 1, 1984 HEADING: PL 1983, C. 853, PT. C, §§15, 18 (NEW)

Subchapter 5: PAYMENT OF BENEFITS HEADING: PL 1983, C. 853, PT. C, §§15, 18 (NEW)

§1358. Cost-of-living and other adjustments

1. Cost-of-living adjustments. Except as provided in subsection 2, paragraph A, retirement allowances under this chapter shall be adjusted as follows.

A. Except as provided in paragraph A-1, the board shall automatically adjust allowances, beginning in September 1985, and each September thereafter, by any percentage increase in the Consumer Price Index from July 1st to June 30th, but only to a maximum annual increase of 4%. The board shall determine the cost of these adjustments and shall include them in its budget requests, if necessary. [2009, c. 473, §1 (AMD).]

A-1. If there is a percentage decrease in the Consumer Price Index from July 1st 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. [2009, c. 473, §2 (AMD).]

B. Whenever the annual percentage change in the Consumer Price Index from July 1st to June 30th exceeds 4%, the board shall adjust allowances as set out in paragraph A and shall report the 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, §8 (AMD).]

C. Adjustments under this section must be applied to the allowances of all retirees who have been retired for at least 12 months before the adjustment takes effect, except that a member who has less than 10 years of creditable service on July 1, 1993 may not receive a cost-of-living adjustment until at least 12 months after reaching normal retirement age. Beneficiaries of deceased retirees and members are eligible for the adjustment provided in this section at the same time the deceased retiree or member would have been eligible. A member who is eligible to retire as of June 30, 1993 and who actually retires effective no later than July 1, 1994 is eligible for the cost-of-living adjustment if that member has been retired for at least 6 months before the date that the adjustment becomes payable. [1993, c. 595, §2 (AMD).]

D. The amount of a retirement allowance payable under this chapter shall not be less than the retiree received on the effective date of his retirement. [1985, c. 693, §11 (RPR).]

[ 2009, c. 473, §1, 2 (AMD) .]

2. Retirement allowances. Retirement allowances under section 1352, subsection 4.

A. Beginning in July 1985, and each July thereafter, through July 1989, retirement allowances under section 1352, subsection 4, shall be increased by 6% compounded annually. [1985, c. 693, §11 (NEW).]

B. Beginning in September 1990, and each September thereafter, retirement allowances under section 1352, subsection 4, shall be adjusted as provided in subsection 1. [1985, c. 693, §11 (NEW).]

[ 1985, c. 693, §11 (NEW) .]

SECTION HISTORY

1983, c. 853, §§C15,18 (NEW). 1983, c. 863, §§B36,B45 (AMD). 1985, c. 693, §11 (RPR). 1993, c. 410, §§L8-A (AMD). 1993, c. 595, §2 (AMD). 2007, c. 249, §8 (AMD). 2009, c. 433, §§1, 2 (AMD). 2009, c. 473, §1, 2 (AMD).