(1) The benefits payable under the statewide defined benefit plan established by this part 4 may be redetermined effective October 1 each year. If such benefits are redetermined, such redetermined amount shall be payable for the following twelve months. To be eligible for redetermination, such benefits shall have been paid for at least twelve calendar months prior to the effective date of redetermination. Any redetermination of benefits made pursuant to this section shall be in lieu of any other annual cost of living adjustment.
(2) and (3) (Deleted by amendment, L. 2008, p. 13, § 1, effective August 5, 2008.)
The cost of the adjustment of benefits provided by this section shall be funded in thesame manner as other defined benefits established by this part 4.
(a) Effective October 1, 2008, and each year thereafter, any redetermination of benefits made pursuant to subsection (1) of this section shall be determined by the board in its discretion as a fiduciary of the statewide defined benefit plan after considering the funding level of the plan, the cost of such increase, whether the increase creates an adverse actuarial impact on the plan's ability to fund future benefits, and any other factors the board deems appropriate. The redetermined benefits shall not exceed the greater of:
One hundred three percent of the benefits paid for the prior twelve-month period; or
The benefits paid during the prior twelve-month period multiplied by a fraction using the consumer price index for the immediately preceding calendar year as the numerator and the consumer price index for the calendar year prior to the immediately preceding calendar year as the denominator.
(b) As used in subparagraph (II) of paragraph (a) of this subsection (5), the term "consumer price index" means the national consumer price index for urban wage earners and clerical workers prepared by the United States department of labor.
Source: L. 96: Entire article added with relocations, p. 910, § 1, effective May 23; (2) amended, p. 1340, § 3, effective June 1. L. 2002: (1), (2), and (4) amended, p. 173, § 2, effective October 1. L. 2008: (1), (2), and (3) amended and (5) added, p. 13, § 1, effective August 5.
Editor's note: This section was formerly numbered as § 31-30-1010.