49-15-403 - Annual cost-of-living adjustment.
49-15-403. Annual cost-of-living adjustment.
(1) The office shall make an annual cost-of-living adjustment to:
(a) an original allowance paid under Section 49-15-402 and Part 5, Death Benefit, of thischapter if the allowance has been paid for at least one year; and
(b) an original payment made to an alternate payee under a domestic relations order if thepayment is to be paid as a percentage of the allowance rather than a specific dollar amount.
(2) (a) Unless Subsection (2)(b) applies, the original allowance shall be increased by theannual increase in the Consumer Price Index up to a maximum of 2.5%.
(b) If the participating employer has made an election under Subsection (5), and in lieuof the annual increase under Subsection (2)(a), the original allowance shall be increased by theannual increase in the Consumer Price Index up to a maximum of 4%.
(c) Annual increases in the Consumer Price Index in excess of the applicable maximumannual increase under this Subsection (2), shall be accumulated and used in subsequentadjustments when the annual increase in the Consumer Price Index is less than the applicablemaximum annual increase under this Subsection (2).
(3) The Consumer Price Index used in calculating adjustments shall be a United StatesBureau of Labor Statistics Consumer Price Index average as determined by the board.
(4) The cost-of-living adjustment made under this section may not decrease theallowance.
(5) (a) A participating employer may make a one-time election to provide the annualcost-of-living adjustment under Subsection (2)(b), in lieu of the annual cost-of-living adjustmentunder Subsection (2)(a), for the participating employer's current and future retirees.
(b) A participating employer shall make the election under this Subsection (5) prior toDecember 1, 2012.
(c) The participating employer shall indicate whether or not it elects to participate in thisbenefit by enacting a resolution or ordinance to that effect and making an application to theoffice.
(d) The effective date for the annual cost-of-living adjustment under Subsection (2)(b) isJanuary 1 of the year following an election under Subsection (5)(a).
(e) Notwithstanding the election provided under this section, the state, as a participatingemployer, shall provide the annual cost-of-living adjustment under Subsection (2)(b) to itseligible employees and retirees effective on January 1, 2009.
(6) (a) To be eligible for the annual cost-of-living adjustment under Subsection (2)(b), aretiring employee shall earn the final 72 months of service credit prior to initial retirement:
(i) as an employee of a participating employer who:
(A) has made the election under Subsection (5)(a); or
(B) is included under Subsection (5)(e); and
(ii) in a covered position under Title 49, Chapter 14, Public Safety ContributoryRetirement System Act or under Title 49, Chapter 15, Public Safety Noncontributory RetirementSystem Act.
(b) The annual cost-of-living adjustment under Subsection (2)(b) may not be paid to aretiree who is not eligible under this Subsection (6).
(7) An allowance adjustment made under Subsections (2)(b) and (5) may not be paidprior to the effective date of the enhanced cost-of-living adjustment for the participatingemployer.
(8) The board may adopt rules for:
(a) the administration of the election provided under Subsection (5); and
(b) the effective date of the enhanced cost-of-living adjustment for participatingemployers.
Amended by Chapter 101, 2009 General Session
Amended by Chapter 221, 2009 General Session