Discussion of July 1, 2016, Annual Cost of Living Adjustment for

Transcription

CITY OF LOS ANGELES
DEPARTMENT OF WATER AND POWER
INTRADEPARTMENTAL CORRESPONDENCE
Date:
February 18, 2016
To:
Retirement Board Members
From:
Linda P. Le, Retirement Plan Manager
Subject:
Board Agenda Item No. 8: Discussion of July 1, 2016, Annual Cost of Living
Adjustment for Eligible Recipients of Monthly Retirement Plan Benefits; and Possible
Action (February 24, 2016, Regular Retirement Board Meeting)
J.P,
The Water and Power Employees' Retirement, Disability, and Death Benefit Insurance Plan
(Plan) provides for annual Cost of Living Adjustment (COLA) for eligible retirees, surviving
spouses/domestic partners/beneficiaries, and Plan members on Permanent Total Disability.
These COLAs are based on the Consumer Price Index (CPI) for the Los Angeles - Riverside Orange County, California- Metropolitan area as published by the Bureau of Labor Statistics.
The maximum annual COLA permitted by the Plan is 3.0% for Tier I members, 2.0% for Tier 2
members, and 3.0% for Tier 2 members who purchased the Additional COLA Coverage.
For Tier I members only, if the increase in the CPI is greater than 3.0%, the percentage in
excess of 3.0% is carried over and added to the person's cost of living bank. For those years
when the increase in the CPI is less than 3.0%, any balance in the cost of living bank is used to
increase the COLA up to the 3.0% maximum.
The increase in the CPI used to determine the COLA for July 1, 2016, was 0.9%; therefore, all
eligible recipients of Tier I Plan benefits are entitled to withdraw from their COLA bank until their
bank is exhausted to augment their COLA up to the maximum 3.0%.
The attached resolution provides for a tiered COLA from 0.9% to 1.2% to be effective
July 1, 2016, for all eligible recipients of Tier I Plan benefits, and it instructs the Retirement Plan
Manager to deduct the necessary amount from each such recipient's cost of living bank. The
resolution also provides a COLA of 0.9% to be effective July 1, 2016, for all eligible recipients of
Tier 2 Plan benefits.
The following documents are attached:
•
•
•
Resolution No. 16-66
Correspondence from James G. Tan, Director of Internal Audit, dated February 8, 2016
Correspondence from Linda P. Le, dated January 21, 2016
LPUKM:jq
8.1
CITY OF LOS ANGELES
Date:
February 8, 2016
To:
Linda P. Le- Retirement Plan Manager
From: )fJames G. Tan, Director of Internal Audit
I
Subject Verification of COLA Increase for Retirees Effective July 1, 2016
At the request of management of the Water and Power employees' Retirement Plan
(Plan), we verified the accuracy of the proposed Cost-of-Living-Adjustment (COLA)
effective July 1, 2016. The proposed COLA will be submitted to the Retirement Board
for approval on February 24,2016.
Based on our review, the increase in the CPI used to determine the COLA for
July 1, 2016 is 0.9 percent.
We also determined that the maximum annual cost of living increase permitted by the
Plan is 3 percent for Tier I members, 2 percent for Tier II members, and 3 percent for
Tier II members who choose to purchase the Additional COLA Coverage when the CPI
exceeds 2 percent.
For Tier I members only, if the increase in the annual CPI is greater than 3 percent, the
percentage in excess of 3 percent is carried over and added to each retiree's cost of
living bank; and if the increase in the annual CPI is less than 3 percent, any balance in a
retiree's cost of living bank is used to increase the cost of living adjustment up to the 3
percent maximum.
Therefore, we conclude that the increase in the CPI used to determine the COLA for
July 1, 2016 is 0.9 percent. Since the maximum cost of living bank balance is 0.3
percent, the COLA adjustments effective July 1, 2016, to be approved by the
Retirement Board on February 24, 2016, will range from 0.9 percent to 1.2 percent
depending on the cost of living bank balance of each Tier I retiree. For Tier II retirees,
the COLA adjustment effective July 1, 2016 will be 0.9 percent.
This review did not include a complete verification of the cost of living banks or the
resL·Iting monthly allowance to be paid to each retiree. However, we found that changes
and adjustments made to the cost of living banks between fiscal years 2001-2002 and
2015-2016 are accurate.
Attached as Exhibit 1 is the CPI verified by Internal Audit.
JT:jp
Attachment
c: Jeffery L. Peltola
Mary C. Higgins
Monette Carranceja
Katie Zordilla
Kendrick Mah~
James G. Tan
Lucy Chou
8.3
Bureau of labor Statistics
Consumer Price Index- All Urban Consumers
Original Data Value
CUURM21SAO
Series ld:
Not Seasonally Adjusted
Area:
Los Angeles-Riverside-Orange County, CA
Item:
All items
1982-84=100
Base
Years:
2005!0 2015
Apr
201.1
210.5
217.845
224.625
221.693
225.916
233.319
236.866
239.043
Mar
199.2
208.5
216.500
223.606
221.376
225.483
232.241
236.941
239.995
May
201.5
212.4
218.596
226.651
222.522
226.438
233.367
237.032
239.346
Jul
201.4
211.4
217.454
229.886
224.010
225.991
231.303
235.776
238.920
Aug
203.1
211.9
217.330
228.484
224.507
226.373
231.833
237.222
239.219
Sep
205.8
212.9
217.697
227.449
225.226
226.048
233.022
238.104
239.611
Nov
Jan
195.4
206.0
212.584
220.918
220.719
224.610
228.652
233.441
238.015
2014
2015
239.857 241.059 242.491 242.437 243.362 243.528 243.727 243.556 243.623 243.341 241.753
239.724 241.297 243.738 243.569 246.093 245.459 247.066 246.328 245.431 245.812 245.711
Feb
197.4
207.5
214.760
221.431
221.439
224.620
229.729
234.537
239.753
Jun
200.7
211.1
217.273
229.033
223.906
225.877
232.328
236.025
239.223
Oct
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
206.9
211.4
218.696
226.159
225.264
226.794
233.049
240.111
239.940
205.6
211.1
219.943
222.22_9
224.317
225.941
232.731
237.675
238.677
Dec
203.9
210.6
219.373
219.620
223.643
226.639
231.567
236.042
238.742
Annual
201.8
210.4
217.338
225.008
223.219
225.894
231.928
236.648
HALF1
199.2
209.3
216.260
224.377
221.943
225.491
231.608
235.807
HALF2
204.5
211.6
218.416
225.638
224.495
226.296
232.251
237.488
239.185
242.746
243.313 245.951
0.9% =(244.632-242.434)/242.434
Rjnd to the nearest one-tenth of one percent (0.1%)
'i:l
Data Source:
@ UNJ'fEt:i"STATES DEPARTMENT OF. 'LABoR'
, '
1 f
•
'
)
'
~
I
~
' •
: ... :
1
';
'.;;
•
?i_ Bo.R.E~~u·oF LABOR ST1~nsn~s
... ,
•
~ •
.
~- L•,.- ·""-
Sub~cts -
Home...
•
• ,
,.
P~bbcatioos ....
'
'
'
.
•
. '-
'
*
u'
...c'
:::
..,
• ,, .
,
· .·:.·. ····- _- . . : ·. _:.:
'--·
. •
EcO?~~~~ases -
•
Stude~ts ~
Verified and Recalculated by Internal Audit Staff
'.
Be~ ....
'
'
•
·:
.~
•·:
.. · · -'. · ·
,
t
~
~.f
'
,
•
f. . -~ =· .:~ , .: : , ,:_·
Databases. Tables & Calculators by Subject
Change Output Options:
indude graphs
tndude .Qnnual av«aoes
Consumer Price ~•dex • AD Urban Consumers
Sl!ries Id:
CU'$~!1S.:J
'iot sea~cna!li.· O:.d iuste:l
. LOS- .:.nrt!ts.·-:i·•t~"S!.de-C-&:'\i-t C~t::r.tj., •:.;.,
;;.H tte,.-::
ease Period: 1~0.:.-s.:.-t~
Area:
Ite111:
Download:
y.,...
H<iS
2006
ao07
. 2008
:zoog
ailto
2011
'1o12
2013
. 2oi4
~015
£1: ~Rt
fd>
Har
~r
May . Jun
Jut
197.-t
199~
201.1
:!01.5
200.7
:!0!.4
207.5
.20&.5 .. 2!0.5 . .i~2.4. 211.1. 211."1
2'1i.S$4 21-1;.760 216.SBO 2i7.s-t5 215.596 217.273 i17.4S-t
. 220.918 2.21.431 223.6ri6. i2"-l.62S i26.6Sl. 229.033 229.886
220.119 ~2:.:;>9. 2i1_.116 ·221.693 22i.s2i ii3.9ti6 _ii4~oio
224.610 z;z.;.Glo 225.483 225.916 2z6.43ii · zz5:sn 225.99!
2~s._6s2. 229:':29 ~32.2-li .J33.31-? i33.367 · zn.32S 2n.Jo1
233.4-11 23-1.537 236.941 236.866 2·1i.ci:i2 i36:o2S·· 235.?76
·· i3s.ots ~~9-7~3 ..23?.995 ~i~-~l ~39.346. 23~.il3 23&.920
.?~9_.S5? 2-1!.059 242.491 242.437. 243.362 243.528 243.727
23?-724 ~1.297 :i-1_~7Js z.;:i.569 ·z~6,o9:i" z.;s.-is9 i-11:o66_
Jan
195.;
20~0
A!J9
203.1.
2U.9
.21;.330.
?28.4~
224-50'
22o:31l
2~u3~
237.222
239.219
243.556
246.325
Sep
Oct
Nov
Dec M.nual :. HAl.f1
ZOS.S
2:06.9
2~5-~.
.?03.9
~Ql.S
199.2
. ~12..~. . 2;J.~ ..;
.:,1~.1; 21p.6
~JO.~~ · 2Q9.. ~
2p.69?. 218:.696. llt~-94~ 219.373 21?.338 216.260
227.4;9 Z26.159 222.229 ~i9...620: 2.?~~008 22;,377
22s.n6· 225~264 · i2-1.3v 223.643 223.219 221.943
HAIJ'2
204.5
211.6
2t~Ai&
225.635
224;495
226;o-is· 226.79-! ·n5.g:;1· 226.639 zzs.s94 · 22s ..;91 22.~.i9s.
i~}.ozi: 233.049. 23z,73! · 2~1.sG':. i11,n~: ·21_1.6p6. ?32,251
238.104 2c10.u1 237.675 236.042 236.645 235.so; 237.488
2~9.&u_ ~.239.940
. .· . .z~s.&·-7?. 2JS-?-T2 ·239.i~7~9..p9·- 2'3~.j8s·
H3.623 243.H1 241.753 · 240.475 .·242:-134 -12.122 2-02.746
z-1s:-;31· z:;s.s1i its.7:u: 2-i5:35, :Z+t,~J:n:i · z.j5:9~t
12·Montb ~tChang"
series Id:
Ct.llJq;...l.!n.::.a
,iot seasona!i.)·
~justN
~nre:les-fliver=olde~c>.""~nge
Area:
Los
Ite~~:
•11 1tens
Base Period:
195!-s.:.dec
Ccl;ntr, c.-:.
:.v~ :.~n. Feb: Pia!: APr ~:fay lu!! Jul.: !'U9 f Sep Oct
2005· 3.7
:2o"O:!!. 5~4
3.8
~-1:
-1.0
~:;;.
4.8
3.6
. s.;;-: s:Z
s.o
~.2
~-1
5,?. ..5.~ 5...
--1.3 3.4
·2007. 3.2. 3.5 3.8 s:s. 2.9 2.9 _2.9 2.6 i.3
3.i.
s
...
s):
5.7
3.3
s;~ ... 5
3,1
2o~s: -'''~
:2oo9· -0.1 o.o ·1.0 -1.3 :U ~2.2 :2.6 .. ·1.7. cl.O
~.7
~-5
4~2
4.2
3.4
1.0
0.1
0.7
2.8
_0.7
3.0
»
o."i '1..0
"1::1
L6
..
.2010" l,S
"2ii1i 1.8
1012 2.i
2013 2.0
2oi4. 9.(
2015 .:0.1
1.i
l.9
3.0
.t:l
i.o
3.3
2..2
P·
~-9
1.0
l.i
0.5
o.s
i.3
0.5
0.1
~·~
1:5
u. 0.9 0.9
).l· 2.9 2 ...
i.6 l.fo 1-?
1.0 1.-i l.3
1.7 1.8 ..·2~0
1.1 .. 0.8 i.i
9·!3 0.-1
2.;:
2:3
o.s
·1,S
1.1
~~ Dec .Annual : ~1"1 :lf!llfl
-T.-1 4.5
i.S .. -:T-0
... 9
2.:! i7 3.3
3.1
-q ..; Q-~ i:s
»
3.ti
0.6 ·0.1
~~7 1.4
2-~
0.-i
i.~
1.9
1.1
0.7
2.-0
-t.l
3.3
3.5
-o.s.:
5.1
3,3;
3.8
3.5
3.2
3.3
-1.1
·0.5
1.2
2.7
2.0
0.8
b6
?.-7, .. 2.6
1.1
1.5.
?·3
1.8·
~-,~:~i)1{
0.7
i.5
;.3
Generated on: February 1, 2016 (05:22:56 PM)
Source: Bureau of Labor Statistics
8.4
CITY OF LOS ANGElES
Date:
January 21, 2016
To:
James Tan, Director of Internal Audit
From:
Linda P. Le, Retirement Plan Manager 1
Subject:
Request for Verification: Cost-of-Living-Adjustment (COLA) Increase for Retirees,
Surviving Spouses/Beneficiaries and Members on Permanent Total Disability
Effective July 1, 2016
Jl!?/
u
(f
Section IV E (10), V D (8), and VII F (8) provides for annual COLAs for eligible retirees,
surviving spouses/domestic partners/beneficiaries, and members on Permanent Total Disability.
These cost of living adjustments are based on the Consumer Price Index (CPI) for the Los
Angeles - Riverside - Orange County, California - Metropolitan area as published by the Bureau
of Labor Statistics. The maximum annual cost of living increase permitted by the Plan is 3.0%
for Tier I members, 2.0% for Tier II members, and 3.0% for Tier II members who purchased the
Additional COLA Coverage.
increase the cost of living adjustment up to the 3.0% maximum.
The increase in the CPI used to determine the cost of living adjustment for July 1, 2016, was
0.9%.
The Plan allows for increases and decreases in the monthly allowance as noted below:
..
o
Tier I Members
o Subject to the Provisions of This Subdivision (10) every monthly
retirement allowance .. .on the first day of July of each year, by a
percentage of such allowance then being paid, which shall equal to the
nearest one-tenth of one percent (0.1%) the percentage of annual
increase or decrease in the cost of living during the preceding calendar
year, provided that on or after July 1, 1973, such increase or decrease
shall not in any event exceed three percent (3%) of any such allowance in
any year. [Section IV E (10) (a) (i) and (ii}]
Tier II Members
o Subject to the provisions of this subdivision, every monthly retirement
allowance to a retired member under this Section VII F, or if not living, to
his or her beneficiary under Option (b) or Option (c) of Section VII F
(6)(a), and every monthly allowance payable pursuant to Section VII F (7)
to an Eligible Spouse, Domestic Partner, surviving spouse or surviving
Domestic Partner, excluding therefrom any portion thereof which is
attributable to a member's additional contributions, shall be increased or
decreased on the first day of July of each year, by a percentage of such
· allowance then being paid, which shall equal, to the nearest one-tenth of
one percent (0. 1 %), the percentage of annual increase or decrease in the
cost of living during the preceding calendar year; provided that such
increase or decrease shall not in any event exceed two percent (2%) of
8.5
Page2
January 21, 2016
o
•
any such allowance in any year. Benefits which first become payable after
the first day of July in a given year shall be adjusted on the same terms
and in the same manner as provided in Section IV E (1 O)(f). [Section VII
F(B)].
o Members shall be allowed to purchase additional post-retirement cost of
living adjustment (COLA) coverage, not to exceed an additional 1% per
year, to be paid only to the extent that the Consumer Price Index used to
compute the benefit provided in Section VII F (8) in any given year
exceeds 2%. The member shall be required to pay the full actuarial cost
for this coverage by a permanent reduction in his or· her retirement
allowance at the time of retirement. Adjustments provided under this
division (9) shall not limit the right to receive adjustments awarded under
division (10) below. [Section VII F(9)].
Members on Permanent Total Disability
o Subject to the provisions of this subdivision (8), every disability allowance
for Permanent Total Disability payable pursuant to this Section V D, shall
be increased or decreased ... as of the first day of July of each year, by a
percentage of such allowance then being paid, which shall be equal, to
the nearest one-tenth of one percent (0.1%), the percentage of annual
increase or decrease in the cost of Jiving during the preceding calendar
year; provided that on and after July 1, 1973, such increase or decreases
hall not in any event exceed three percent (3%) of any such allowance in
any year for members of Tier 1 nor two percent (2%) of any such
allowance in any year for members of Tier 2. [Section V D (8) (a)].
The COLA percentage shall be determined based upon the Consumer Price
Index (CPI) (Los Angeles-Riverside-Orange County, CA Metropolitan Area- All
Items) for ''All Urban Consumers" as published by the Bureau of Labor Statistics.
[Section IV E (10)(b), V D (B)(b), and (VII F (BJ(b)].
We request that Internal Audit verify the accuracy of the COLA effective July 1, 2016, to be
approved by the Board of Administration (Retirement Board) of the Water and Power
Employees' Plan (Plan) on February 24, 2016.
We have attached the relevant sections of the Plan, data from the Bureau of Labor Statistics,
and schedules for "Adjustments Paid" and "Retirees' CPI Bank".
Should you require any further information, please call Kendrick Mah at (213) 367-1907,
Mary Higgins at (213) 367-1676, or Katie Zordilla at (213} 367-0353.
LPUKM:km
Attachments
c:
Linda P. Le
Monette Carranceja
Mary C. Higgins
Katie Zordilla
Kendrick Mah
Lucy Chou
8.6
RETIREMENT
(10)
IV E (10)- E (lO)(b)
Post-Retirement Cost of Uving Adjustment
(a)
Subject to the Provisions of This Subdivision (10)
(I)
every monthly retirement allowance to a member who retires
on or after March 1, 1973, or if not living, to his beneficiary
under Option (b) or Option (c) of subsection E (6) of this
Section IV, and
(ii)
every monthly allowance to an Eligible Spouse, surviving
spouse or surviving Domestic Partner of a member who
retires on or after March 1, 1973, excluding therefrom any
portion thereof which is attributable to a member's additional
contributions, payable pursuant to this Section IV E, shall be
increased or decreased on the first day of July of each year,
by a percentage of such allowance then being paid, which
shall equal, to the nearest one-tenth of one percent (0.1%),
the percentage of annual increase or decrease in the cost of
living during the preceding calendar year; provided that such
increase or decrease shall not in any event exceed three
percent (3%) of any such allowance in any year.
Determination of the percentage of annual increase or decrease in
the cost of living shall be made by the Board of Administration on or
before the first day of April of each year, by reference to the
Consumer Price Index (Los Angeles-Riverside-Orange County, CA- All Items) as published by the Bureau of Labor Statistics of the
United States Department of Labor for each of the two immediately
preceding calendar years. The percentage by which such index for
the more recent full calendar year shall have varied from such
index for the full calendar year imm!!diately prior thereto shall be
the pereentage used to calculate adjustments in the such
allowances pursuant to paragraph (a) of this subdivision.
(b)
The percentage of increase or decrease in the cost of living in any
calendar year which is in excess of the maximum amount of annual
increase or decrease provided in paragraph (a) of this subdivision
shall be accumulated and carried over to the next succeeding
calendar year and added to or subtracted from the percentage of
increase or decrease in the cost of living for such succeeding
calendar year and included in the calculation of adjustments in such
allowances effective the first day of July next. following such
succeeding calendar year. Any portion of such excess not included
in such calculation in any year as a result of the limitation in the
maximum amount of annual increase or decrease provided in
paragraph (a) of this subdivision, shall be similarly accumulated
and carried over from year to year until exhausted and included in
. the calculation or subsequent adjustments in such allowances.
R-67
8.7
DISABILITY
V D (7)- D (8)(c)
the Board, for the purposes of this subdivision and of Section VB (1)(e)
only, shall thereupon make such· determination with the same
consequences as though it had been made by the Industrial Accident
Commission.
(8)
Cost of living Adjustment to Pennanent Total Disability Allowances
(a)
Subject to the provisions of this subdivision (8), every disability
allowance for Permanent Total Disability payable ·pursuant to this
Section V D, shall be increased or decreased as of July 1, 1970,
and thereafter as of the first day of July of each year, by a
percentage of such allowance then being paid, which shall be
equal, to the nearest one-tenth of one percent (0.1%), the
percentage of annual increase or decrease in tl')e cost of living
during the preceding calendar year; provided that on and after July
1, 1973, such increase or decrease shall not in any event exceed
three percent (3%) of any such allowance in any year for members
of Tier 1 nor two percent (2%) of any such allowance in any year for
members of Tier 2.
(b)
before the first day of Apnl of each year by reference to the
Consumer Price Index (Los Angeles-Long Beach Metropolitan
Area-All Items) as published by the Bureau of Labor Statistics of
the United States Department of Labor for each of the two
immediately preceding calendar years. The percentage by which
such index for the more recent full calendar year shall have varied
from such Index for the full calendar year immediately prior thereto
shall be the percentage used to calculate adjustments in such
Commencing January 1, 1978, said Consumer Price Index shall be
the Consumer Price Index (Los Angeles-Riverside-Orange County,
CA- All Items) for "All Urban Consumers (CPI-U)".
(c)
increase or decrease provided in paragraph (a) of this subdivision,
allowances effective the first day of July next following such
the calculation of subsequent adjustments in such allowances. The
provisions of this subdivision shall not apply to members of Tier 2
D-20
8.8
DISABILITY
V D (8)(c)- D (8)(h)
except for purposes of determining their entitlement to· a
discretionary increase pursuant to Section V D (8)0} herein.
(d)
No such allowance shall be reduced by operation of this subdivision
below the amount payable as of June 30, 1970, or as of the date of
commencement of Permanent Total Disability of the member to
whom such allowance is payable, whichever is later.
(e)
Every member who, on or after July 1, 1970, becomes active in
Department service subsequent to a Permanent Total Disability for
which he was paid a disability allowance shall have such allowance
increased or decreased as provided in this subdivision the same as
though he were continuously receiving a disability allowance for
Permanent Total Disability, if he again becomes disabled and such
disability is construed to be a renewal of such Permanent Total
Disability pursuant to the provisions of Section V D (2).
(f)
Benefits to which any member may be entitled under this
subdivision shall be paid monthly, by action of the Board, from
moneys on deposit in the Disability Fund.
(g)
Notwithstanding anything to the contrary in paragraph (a) of this
subdivision (8), every disability allowance for Permanent Total
Disability payable on September 1, 1972 which is subject to
adjustment pursuant to this subdivision (8) and which first became
payable on or before July 1, 1972, shall be increased as of
September 1, 1972 by an amount equal to the amount of such
allowance then being paid multiplied by the percentage that is set
forth opposite the period during which such allowance first became
payable in the table below:
The Period During
Which Such Allowance
First Became Payable
Percentage
October 1, 1938 through July 1, 1971
2.4
July2, 1971 through July 1, 1972
.9
The percentage of increase in the cost of living applicable to each
such allowance which has been accumulated and carried over as of
July 1, 1972 pursuant to paragraph (c) of this subdivision (8) shall
be reduced by the percentage by which such allowance has been
multiplied pursuant to the provisions of this paragraph (g).
(h)
subdivision (8), every disability ·allowance for Permanent Total
Disability payable on March 1, 1979, which is subject to adjustment
pursuant to this subdivision (8) and which first became payable on
or before July 1, 1978, shall be increased as of March 1, 1979 by
an amount equal to the amount of such allowance then being paid,
D-21
8.9
.-----------------------------------
TIER 2 PROVISIONS
(d)
VB F (7)(d)- F (8)(a)
Benefit limitations
The provisions of this division (7) shall not apply to the Eligible
Spouse or Domestic Partner of a member who is designated as
beneficiary under either Option (b) or Option (c) of Subsection F (6)
of this Section VII; nor shall said provisions apply to any member
who upon retirement is not entitled to receive a minimum pension
under Subsection F of this Section VII or to the Eligible Spouse or
Domestic Partner of such member.
An Eligible Spouse or Domestic Partner shaU not be entitled to
receive more than one monthly allowance under the provisions of
subdivision (b) of this division (7) for the same period. Any person
who qualifres for such allowance through the deaths of two or more
retired members may elect in writing which allowance to receive.
(e)
Survivor Benefit (Death before Retirement)
Should a plan member die prior to retirement leaving a surviving
spouse or surviving Domestic Partner who qualifies for and elects
to receive the survivors optional death benefit allowance provided
in Section VI D (7), the monthly allowance for the surviving spouse
or surviving Domestic Partner of this deceased member shall be
that which such survivor would have been entitled to as the
member's designated beneficiary had the member retired on the
day next preceding the day of his or her death and elected Option
(d) {Joint or Survivor Retirement Allowance) specified in Section
VII F (7). Such monthly allowance shall be calculated in accordance
with the provisions of and shall include the actuarial factor for
Option
(d) (Joint or Survivor Retirement Allowance).
Notwithstanding anything to the contrary herein, the allowance
payable hereunder shall terminate as of the last day of the calendar
month next preceding the month in which the surviving spouse or
Domestic Partner dies.
(8)
Post-Retirement Cost of Living Adjustment
(a)
Subject to the provisions of this subdivision, every monthly
retirement allowance to a retired member under this Section VII F,
or if not living, to his or her beneficiary under Option (b) or Option
(c) of Section VII F (6){a), and every monthly allowance payable
pursuant to Section VII F {7) to an Eligible Spouse, Domestic
Partner, surviving spouse or surviving Domestic Partner, excluding
therefrom any portion thereof which is attributable to a member's
additional contributions, shall be increased or decreased· on the first
day of July of each year, by a percentage of such allowance then
being paid, which shall equal, to the nearest one-tenth of one
percent {0.1%), the percentage of annual increase or decrease in
the cost of living during the preceding calendar year; provided that
such increase or decrease shall not in any event exceed two
percent {2%) of any such allowance in any year. Benefits which first
T-22
8.10
TilER Z PROVISIONS
VII F (8)(a)- F (IO)(a)
become payable after the first day of July in a given year shall be
adjusted on the same terms and in the same manner as provided in
Section IV E (10)(f).
(9)
(b)
Consumer Price Index (los Angeles-Riverside-Orange County, CA- All Items) as published by the Bureau of Labor Statistics of the
index for the full calendar year immediately prior thereto shall be
the percentage used to calculate adjustments in such allowances
pursuant to paragraph (a) of this subdivision.
(c)
below the amount payable on the effective date of retirement of the
member to or on account of whom such allowance is payable,
whichever is later.
(d)
The provisions of this subdivision shall apply only to such
allowances payable to or on account of those members who qualify
for the Minimum Pension D pursuant to Subsection F of this
Section VII at the time of retirement or survivors of Tier 2 members
who receive the survivors optional death benefit allowance provided
in Section VI D (7). The provisions of this subsection shall not apply
to those persons who qualify for the Minimum Pension D pursuant
to Subsection G of this Section VII.
Purchase of Additional COLA Coverage
Members shall be allowed to purchase additional post-retirement cost of
for this coverage by a permanent reduction in his or her retirement
allowance at the time of retirement Adjustments provided' under this
division (10) below.
·
(10)
Discretionary Post-Retirement Cost of Living Adjustments
(a)
Purchasing Power Reserve
Once allowances become payable pursuant to Section VII F, the
Board of Administration shall maintain an annual record of the
percentage increase or decrease in the cost of living in each
increase or decrease provided in subdivision {a) of division (8) of
T-23
8.11
A to Z Index I FAQs I About BLS I Contact Us
r-onow Us
I
I
Home
Subjects
I
Data Tools
I
Publications
I
Subscribe to E-mail Updates
Search BlS.gov
Students
Economic Releases
I
Beta
Databases, Tables & Calculators by Subject
Change Output Options:
From: [iiiOs v
I
To: !2015 v}
[] include graphs
0
~~
I What's New I Release calendar I Site Map
fONT SIZE:
' ~:
I~
1\ilore Form6ttjng OP.tions ~
indude annual averages
Data extracted on: January 20, 2016 (3:18:47 PM)
Consumer Price Index -All Urban Consumers
Series Id:
CUURA421SA0
Not Seasonally Adjusted
Area:
-L(is·'Anqeles'-:Rivei:side-orange county;· ,.CA
rtem:
'A.ll ":rteitiii
Base Period:
1982-84al00
Download:
!3, a!SJt
Jan
Feb
Ma!.. AIJr : May
Jun
Jul
_Au.!!. :. -~~P..
Oct
Nov
Dec :~~ai HALFl · HALF2
195.4
197.4
199.2 • 201.1: ·· 2oi.5' 200.1
2o1.4 · 203.1, zo5.8
206.9 • 205.6' · · ioi9; 2oi:ll' · ··199.2 · 204~·5
:.2.006
206,0 · 207.5
206.5
210.5 . ~1:_2.~. .2:!L1 ..2.11.4
211:~: 212,9 . ,211.A £ii.i:- _Zl_o_:i;'; ~.10.A. ?-<J~.-3: 2.1.1.·6
. 2007 212.584 214.760. 216.500:217.645.218.596 '217.273. 217.454' 217.330 217.697 218.696. 219.943 '219.373 217.338 216.260 218.416
;icioa: 2:io~9ia 221.431 . 223.606. 224.625 226.65.1 . 229..033. 229.886 · 228.4&1: 227.<~49 m:159· m.ii9 .219.620 · 22s.ooa 224.377 i 22s:63a
j i.~o.9 22o.1i9 · 2~i.1139 · ~21,376 '221.693: 22_2.~2 . 223.~06. 2?4.01~.- 224.s.o.7.j?,S.226. m:264 _;:ii4.3.!;i : 223.:643. 2~i,i.g )21.9~3 j,2~·.49S.
: 2~J,o 22~.5.10 22..4.629, 225,463 •2zs.9l~. · 226-~~s :_225.8?( m,9.91.. 2?6_.37~ 2_26:046 • 226.794_. ~~5.9~1-~ _22~,53.9; 2~5,8?.4 '. ~~S.-49~ :.?2~:298.
'2011 22_8,652. 229?29. 232.241: 233.319 '233.367; 232.328. 231303. 231.833' 233.022. 233.049. 232.731 i 231.567; 231.928: 231.606 i 232.251
2012 233.441 234.537 236.941 i36.s66 237.032 : n6.o25 z3s.776. iJ7.m' 238.io4: i4o.l1i i37.6.7s n6.o4i.; 236:646 23s~siiiii37:4sii·
z38.ois '
239:995 · 239.o43
'239~223 ·238.92o ~
:·2i9.6i'1 :· 239~94o
239.2o7·:
239.'185
239.ss7 · 24i:o59. 242.491 ·• 242.437 •
243.727
s56; 243:623
i4o:475 :
i'2o:t_s ·. 7.2.4. 24 Li9.7 :. 2"!3'.738 •243,569 : 2~)>93 : i4s·.~s9. : 24fo~6: 'i46)i~ ·: 24~.1.31 : 24s.s i45.7i.t. 245._3-57] 2~¥3.2.: _i4J.:3~3 :· ~4.s~95i
·Year
: 2oos
.
· 2oi3 ·
:2oi4 ·:
239.753 ·
·P.9..
'239.346..
243.362 ;243.528 :·
239:i19
:'243.
· i.Jii.677 ;238.742
i39:izg :
·:·243.341 :24i:753;
242:434; 'i4i:i22''.242..746
g:
ii~Mo~ih· P.ei-Ceirt.ciiililiie
Series Id:
CUURA421SAO
Not Seasonally hdjusted
Area:
Item:
.ips•~.ii,i\9-e~e~:-Riverside-orange
Base Period:
1982-84=100
AiJ:i'~~t~iils
Cqlinty, CA:
244.632+
242.4342.198/
242.434=
0.009*
TOOLS
CALCULATORS
Areas at a Glance
Industries al a Glance
Inflation
Location Quofient
HELP
Help & Tutorials
FAQs
8.12
INFO
What's New
Careers @ BLS
RESOURCES
Inspector General (OIG)
Budget and Performance
Economic Releases
Databases & Tables
Maps
Injury And Illness
l
I
Freedom of Information Act
Glossary
AboutBLS
Contact Us
Find It! DOL
Join our Mailing Lists
Linking & Copyright Info
No Fear Act
USA.gov
Benefits.gov
Disability.gov
1 Privacy & Security Statement 1 Disclaimers 1 CUstomer Survey 1 Important Web Site Notit:es
:_ ____ ····-- . ·~·-·· ... .. -·---- ·····-···----.----·--·····-· . . ·--··---·--·--····· ····----- . . . -.--.. -----·-·· ---·--. ····-·------·--·--······-··· ·····-·- _____ ............. ·····-. -·-··- ···- __ J
U.S. Bureau of Labor Statistics I Postal Square Bulld"lllQ, 2 Massachusetts Avenue, NE Washingron, DC 20212-0001
www.bfs.goy I Telephone: 1-202-691·5200 I TOO: 1-800-877-83391 ~
8.13
Adjustments Paid-Tier I
R:\ODLA\CPIBANK.xlsxAdjustments Paid-Tier I
8.14
Adjustments Paid-Tier llH
ADJUSTMENTS PAID
'
Effective Date > 7/1/20141711/2015 7/1/2016
f"(.euremem uate
I
1/1/14- 7/1/14
7/2/14-7/1/15
7/2/15-7/1/16
1.10%1
I
1.30% · ..... 0;9Q%
1.30% •· .. 'o·:90%
. ...,,.· . ..
.:
~-.·
0.90%
.....
:: ...
,_
R:\COLA\CPIBANK.xlsxAdjustments Paid-Tier II
8.15
1f'ie1r ll R.etB~rees' CPll Bank
Effective Date > 7/1/2012 71112013 7/1/2014 7/1/2015 7/112016
Bank Adjustment > -0.30% ···1.00% ·"i.900% ··i .'100% .;Q.30U%
Retirement Date
Before 11/1/67
11/1/67-7/1/68
7/2/68- 7/1/69
7/2/69- 7/1/70
7/2/70- 7/1/71
7/2/71 - 7/1/72
7/2/72- 2/28/73
3/111973
3/2/73- 711/73
7/2/73- 711/74
7/2/74- 711/75
712175- 7/1/76
712176 - 711177
712177- 7/1/78
712178- 7/1/79
7/2/79- 7/1/80
7/2/80- 7/1/81
7/2/81 - 7/1/82
7/2/82- 7/1/83
7/2/83- 7/1/84
7/2/84- 7/1/85
7/2/85- 7/1/86
7/2/86- 7/1/87
712187- 7/1/88
7/2/88 - 7/1/89
7/2/89- 7/1/90
7/2/90- 7/1/91
7/2/91 - 7/1/92
712192- 7/1/93
7/2/93- 7/1/94
7/2/94- 7/1/95
7/2195- 7/1/96
7/2/96- 7/1/97
7/2/97- 7/1/98
7/2/98- 711/99
7/2/99- 7/1/00
7/2/00 - 7/1/01
7/2/01- 7/1/02
7/2/02 - 7/1103
7/2/03-7/1/04
7/2/04 - 7/1/05
7/2/05-711/06
7/2/06- 711107
712107- 7/1/08
7/2/08 - 7/1/09
7/2/09- 7/1/10
7/2/10-7/1/11
7/2/11-7/1/12
7/2/12-7/1/13
7/2/13-7/1/14
7/2/14- 7/1/15
7/2/15-7/1/16
4.900%
4.900%
4.900%
4.900%
4.900%
4.900%
4.900%
4.900%
4.900%
4.900%
4.900%
4.900%
4.900%
4.900%
4.900%
4.057%
2.761%
0.462%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
3.900%
3.900%
3.900%
3.900%
3.900%
3.900%
3.900%
3.900%
3.900%
3.900%
3.900%
3.900%
3.900%
3.900%
3.900%
3.057%
1.761%
0.000%
0.000%0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
1
2.000%
2.000%
2.000%
2.000%
2.000%
2.000%
2.000%
2.000%
2.000%
2.000%
2.000%
2.000%
1.681%1
2.000%
2.000%
1.157%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.300%
0.300%
0.300%
0.300%
0.300%
0.300%
0.300%
0.300%
0.300%
0.300%
0.300%
0.300%
0.000%
0.300%
0.300%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
. 0.000%
·.-o;ooo%
'0:000%·.
::-Oi000%o
::o·;cJOO%:
-_o;ooa%'::mooo%·
:'0(000%:.
.i.OlOoO%\
·.o:ooo%:·
~c0¥0001'/ci'f:
~.ffiOOO%;;
·Jj~ppJi%>
::oro.ooo/oi
'O~OOOlMii:
~O:OOOo/.o?
·;;0:000~1'8
::fO~OP:0.%\1
'.t.otoo:OJYo•\:
::otOOO%}·
:::~O~OOOWo5
~\t:>':0.00%8
j)iOOO%{
·:·mO'OO%f
:~.0:000%'\
"{0i00<1o/o'.
J)';QOO%.'
"~'.OtOQ(l%)\
;~:0£600%::!
:;[;(}~000%'~'
;l)'OfO.OO'!Ycf;'i
;~0(000%?
'gQ'f000:'*{
~OLOOO%~
/mo-oo%t'·
;:)0')000%~
i:\Oi®O%{
t10i000%1:
\OlOOO%}~
;~o'!OOO%Z;
;~Q~OOOo/O:l
;.·o:OOOJYoi'
,~~orooo%7
~moon%~,
';;())0.®'$-·:
~\'0~0:®%':,
i'!Ot'OQO!Wi!
)(E}{()j}()%':'
:(o:croo%:
i;tO~SOO%?
i~OJJCiO~A
~::orooo%;:
Bank adjustment in 2014 for allowances effective 7/2/1976 to 7/l/1977 to reduce the bank by 0.3l9t to
correct an overbanking that occurred on 7/l/2001.
R; \COlA\CPlBANK.K.lsx CPI Bonk-Tier 1
8.16
CITY OF LOS ANGELES
I
Date:
January 21, 2016
To:
)
jr
/
0
From:
Linda P. Le, Retirement Plan Manager
Subject:
Request for Verification: Cost-of-Living-Adjustment (COLA) Increase for Retirees,
Surviving Spouses/Beneficiaries and Members on Permanent Total Disability
Effective July 1, 2016
Section IV E (1 0), V D (8), and VII F (8) provides for annual COLAs for eligible retirees,
surviving spouses/domestic partners/beneficiaries, and members on Permanent Total Disability.
These cost of living adjustments are based on the Consumer Price Index (CPI) for the Los
Angeles- Riverside- Orange County, California- Metropolitan area as published by the Bureau
of Labor Statistics. The maximum annual cost of living increase permitted by the Plan is 3.0%
for Tier I members, 2.0% for Tier II members, and 3.0% for Tier II members who purchased the
Additional COLA Coverage.
increase the cost of living adjustment up to the 3.0% maximum.
The increase in the CPI used to determine the cost of living adjustment for July 1, 2016, was
0.9%.
The Plan allows for increases and decreases in the monthly allowance as noted below:
•
•
Tier I Members
o Subject to the Provisions of This Subdivision (10) every monthly
retirement allowance .. .on the first day of July of each year, by a
percentage of such allowance then being paid, which shall equal to the
nearest one-tenth of one percent (0.1%) the percentage of annual
year, provided that on or after July 1, 1973, such increase or decrease
shall not in any event exceed three percent (3%) of any such allowance in
any year. fSection IV E (10) (a) (i) and (ii)]
Tier II Members
o Subject to the provisions of this subdivision, every monthly retirement
allowance to a retired member under this Section VII F, or if not living, to
his or her beneficiary under Option (b) or Option (c) of Section VII F
(6)(a), and every monthly allowance payable pursuant to Section VII F (7)
to an Eligible Spouse, Domestic Partner, surviving spouse or surviving
Domestic . Partner, excluding therefrom any portion thereof which is
attributable to a member's additional contributions, shall be increased or
decreased on the first day of July of each year, by a percentage of such
allowance then being paid, which shall equal, to the nearest one-tenth of
one percent (0. 1 %), the percentage of annual increase or decrease in the
cost of living during the preceding calendar year; provided that such
increase or decrease shall not in any event exceed two percent (2%) of
8.17
Page2
January 21, 2016
any such allowance in any year. Benefits which first become payable after
the first day of July in a given year shall be adjusted on the same terms
and in the same manner as provided in Section IV E (1 O)(f). [Section VII
F(8)].
for this coverage by a permanent reduction in his or· her retirement
division (10) below. [Section VII F(9)].
Members on Permanent Total Disability
o Subject to the provisions of this subdivision (8), every disability allowance
for Permanent Total Disability payable pursuant to this Section V D, shall
be increased or decreased ... as of the first day of July of each year, by a
percentage of such allowance then being paid, which shall be equal, to
the nearest one-tenth of one percent (0.1%), the percentage of annual
year; provided that on and after July 1, 19 73, such increase or decrease s
hall not in any event exceed three percent (3%) of any such allowance in
any year for members of Tier 1 nor two percent (2%)' of any such
allowance in any year for members of Tier 2. [Section V D (8) (a)].
The COLA percentage shall be determined based upon the Consumer Price
Index (CPI) (Los Angeles-Riverside-Orange County, CA Metropolitan Area-- All
Items) for "All Urban Consumers" as published by the Bureau of Labor Statistics.
[Section IV E (10)(b), V D (B)(b), and (VII F (8)(b)].
o
•
•
We request that Internal Audit verify the accuracy of the COLA effective July 1, 2016, to be
approved by the Board of Administration (Retirement Board) of the Water and Power
Employees' Plan (Plan) on February 24, 2016.
We have attached the relevant sections of the Plan, data from the Bureau of Labor Statistics,
and schedules for "Adjustments Paid" and "Retirees' CPI Bank".
Should you require any further information, please call Kendrick Mah at (213) 367-1907,
Mary Higgins at (213) 367-1676, or Katie Zordilla at (213) 367-0353.
LPUKM:km
Attachments
c:
Linda P. Le
Monette Carranceja
Mary C. Higgins
Katie Zordilla
Kendrick Mah
Lucy Chou
8.18
RETIREMENT
(10)
IV E (10)- E (IO)(b)
(a)
Subject to the Provisions of This Subdivision (10)
(i)
every monthly retirement allowance to a member who retires
on or after March 1, 1973, or if not living, to his beneficiary
under Option (b) or Option (c) of subsection E (6) of this
Section IV, and
(ii)
every monthly allowance to an Eligible Spouse, surviving
spouse or surviving Domestic Partner of a member who
retires on or after March 1, 1973, excluding therefrom any
portion thereof which is attributable to a member's additional
contributions, payable pursuant to this Section IV E, shall be
increased or decreased qn the first day of July of each year,
by a percentage of such allowance then being paid, which
shall equal, to the nearest one-tenth of one percent (0.1 %),
the percentage of annual increase or decrease in the cost of
living during the preceding calendar year; provided that such
increase or decrease shall not in any event exceed three
percent (3%) of any such allowance in any year.
the percentage used to calculate adjustments in the such
(b)
increase or decrease provided in paragraph (a) of this subdivision
the calculation or subsequent adjustments in such allowances.
R-67
8.19
DISABILITY
V D (7)- D (S)(c)
the Board, for the purposes of this subdivision and of Section VB (1)(e)
only, shall thereupon make such determination with the same
consequences as though it had been made by the Industrial Accident
Commission.
(8)
Cost of Living Adjustment to Pennanent Total Disability Allowances
(a)
Subject to the provisions of this subdivision (8), every disability
allowance for Permanent Total Disability payable pursuant to this
Section V 0, shall be increased or decreased as of July 1, 1970,
and thereafter as of the first day of July of each year, by a
percentage of such allowance then being paid, which shall be
equal, to the nearest one-tenth of one percent (0.1%), the
percentage of annual increase or decrease in the cost of living
during the preceding calendar year; provided that on and after July
1, 1973, such increase or decrease shall not in any event exceed
three percent (3%) of any such allowance in any year for members
of Tier 1 nor two percent (2%) of any such allowance in any year for
members of Tier 2.
(b)
before the first day of April of each year by reference to the
Consumer Price Index (Los Angeles-Long Beach Metropolitan
Area--All Items) as published by the Bureau of Labor Statistics of
the United States Department of Labor for each of the two
immediately preceding calendar years. The percentage by which
such index for the more recent full calendar year shall have varied
from such Index for the full calendar year immediately prior thereto
shall be the percentage used to calculate adjustments in such
Commencing January 1, 1978, said Consumer Price Index shall be
the Consumer Price Index (Los Angeles-Riverside-Orange County,
CA- All Items) for "All Urban Consumers (CPI-U)".
(c)
increase or decrease provided in paragraph (a) of this subdivision,
the calculation of subsequent adjustments in such allowances. The
provisions of this subdivision shall not apply to members of Tier 2
D-20
8.20
DISABILITY
V D (8)(c)- D (8)(h)
except for purposes of determining their entitlement to· a
discretionary increase pursuant to Section V D (8)0) herein.
(d)
below the amount payable as of June 30, 1970, or as of the date of
commencement of Permanent Total Disability of the member to
whom such allowance is payable, whichever is later.
(e)
Every member who, on or after July 1, 1970, becomes active in
Department service subsequent to a Permanent Total Disability for
which he was paid a disability allowance shall have such allowance
increased or decreased as provided in this subdivision the same as
though he were continuously receiving a disability allowance for
Permanent Total Disability, if he again becomes disabled and such
disability is construed to be a renewal of such Permanent Total
Disability pursuant to the provisions of Section V D (2).
(f)
Benefits to which any member may be entitled under this
subdivision shall be paid monthly, by action of the Board, from
moneys on deposit in the Disability Fund.
(g)
Disability payable on September 1, 1972 which is subject to
adjustment pursuant to this subdivision (8) and which first became
payable on or before July 1, 1972, shall be increased as of
September 1, 1972 by an amount equal to the amount of such
allowance then being paid multiplied by the percentage that is set
forth opposite the period during which such allowance first became
payable in the table below:
The Period During
Which Such Allowance
First Became Payable
Percentage
October 1, 1938 through July 1, 1971
2.4
July 2, 1971 through July 1, 1972
.9
The percentage of increase in the cost of living applicable to each
such allowance which has been accumulated and carried over as of
July 1, 1972 pursuant to paragraph (c) of this subdivision (8) shall
be reduced by the percentage by which such allowance has been
multiplied pursuant to the provisions of this paragraph (g).
(h)
Disability payable on March 1, 1979, which is subject to adjustment
pursuant to this subdivision (8) and which first became payable on
or before July 1, 1978, shall be increased as of March 1, 1979 by
an amount equal to the amount of such allowance then being paid,
D-21
8.21
TIER 2 PROVISIONS
(d)
VII F (7)(d)- F (S)(a)
Benefit Limitations
The provisions of this division (7) shall not apply to the Eligible
Spouse or Domestic Partner of a member who is designated as
beneficiary under either Option (b) or Option (c) of Subsection F (6)
of this Section VII; nor shall said provisions apply to any member
who upon retirement is not entitled to receive a minimum pension
under Subsection F of this Section VII or to the Eligible Spouse or
Domestic Partner of such member.
An Eligible Spouse or Domestic Partner shall not be entitled to
receive more than one monthly allowance under the provisions of
subdivision (b) of this division (7) for the same period. Any person
who qualifies for such allowance through the deaths of two or more
retired members may elect in writing which allowance to receive.
(e)
Survivor Benefit (Death before Retirement)
Should a plan member die prior to retirement leaving a surviving
spouse or surviving Domestic Partner who qualifies for and elects
to receive the survivors optional death benefit allowance provided
in Section VI D (7), the monthly allowance for the surviving spouse
or surviving Domestic Partner of this deceased member shall be
that which such survivor would have been entitled to as the
member's designated beneficiary had the member retired on the
day next preceding the day of his or her death and elected Option
(d) (Joint or Survivor Retirement Allowance) specified in Section
VII F (7). Such monthly allowance shall be calculated in accordance
with the provisions of and shall include the actuarial factor for
Option
(d) (Joint
or Survivor Retirement Allowance).
Notwithstanding anything to the contrary herein, the allowance
payable hereunder shall terminate as of the last day of the calendar
month next preceding the month in which the surviving spouse or
Domestic Partner dies.
(8)
(a)
Subject to the provisions of this subdivision, every monthly
retirement allowance to a retired member under this Section VII F,
or if not living, to his or her beneficiary under Option (b) or Option
(c) of Section VII F (6)(a), and every monthly allowance payable
pursuant to Section VII F (7) to an Eligible Spouse, Domestic
Partner, surviving spouse or surviving Domestic Partner, excluding
therefrom any portion thereof which is attributable to a member's
additional contributions, shall be increased or decreased on the first
day of July of each year, by a percentage of such allowance then
being paid, which shall equal, to the nearest one-tenth of one
percent (0.1%), the percentage of annual increase or decrease in
the cost of living during the preceding calendar year; provided that
such increase or decrease shall not in any event exceed two
percent (2%) of any such allowance in any year. Benefits which first
T-22
8.22
TIER 2 PROVISIONS
VII F (8)(a)- F (lO)(a)
become payable after the first day of July in a given year shall be
adjusted on the same terms and in the same manner as provided in
Section IV E (10)(f).
(9)
(b)
the percentage used to calculate adjustments in such allowances
pursuant to paragraph (a) of this subdivision.
(c)
below the amount payable on the effective date of retirement of the
member to or on account of whom such allowance is payable,
whichever is later.
(d)
The provisions of this subdivision shall apply only to such
allowances payable to or on account of those members who qualify
for the Minimum Pension D pursuant to Subsection F of this
Section VII at the time of retirement or survivors of Tier 2 members
who receive the survivors optional death benefit allowance provided
in Section VI D (7). The provisions of this subsection shall not apply
to those persons who qualify for the Minimum Pension D pursuant
to Subsection G of this Section VII.
Purchase of Additional COLA Coverage
for this coverage by a permanent reduction in his or her retirement
division (1 0) below.
(1 0)
Discretionary Post-Retirement Cost of Living Adjustments
(a)
Purchasing Power Reserve
Once allowances become payable pursuant to Section VII F, the
Board of Administration shall maintain an annual record of the
percentage increase or decrease in the cost of living in each
increase or decrease provided in subdivision (a) of division (8) of
T -23
8.23
8.24
8.25
8.26
8.27
8.28

Discussion of July 1, 2016, Annual Cost of Living Adjustment for

Transcription

Similar documents

Autumn Statement 2014

Parklife @ The Strand Traralgon

Hotondo February Newsletter

PDF TJF Newsletter No.20

How to Sign Up - SignUpGenius.com

401(k) - Paychex

PDF

your NHS pension - Navigation Wealth Management

Maxx Money Kids` Club