104.1045. Cost-of-living adjustment, amount.
Cost-of-living adjustment, amount.
104.1045. 1. Each person receiving an annuity shall be entitled to acost-of-living adjustment (COLA) when there are increases in the consumerprice index. The COLA shall be made annually beginning twelve months afterthe annuity starting date and shall be equal to eighty percent of theincrease in the consumer price index, but not more than five percent of theannuity amount payable immediately before the payment of the COLA providedthat COLAs payable to a beneficiary shall commence during the month of theanniversary of the member's annuity starting date.
2. For the purposes of this section, an increase in the consumerprice index shall be determined in January of each year, based upon thepercentage increase of (a) the consumer price index for the precedingcalendar year determined by dividing the sum of the monthly consumer priceindex values by twelve, over (b) the corresponding index for the nextearlier calendar year. Any COLA so determined cannot be less than zero andshall be applied in calculating any COLA that becomes payable under thissection during the calendar year in which January falls. Any survivingspouse, beneficiary, or former spouse receiving all or part of an annuityshall be eligible for such COLAs as provided herein.
(L. 1999 S.B. 308 & 314)