86.1220. Cost-of-living adjustments in addition to base pension. - Missouri Statutes

Cost-of-living adjustments in addition to base pension.

86.1220. 1. Provided that the retirement system shall remainactuarially sound, each of the following persons may receive each year, inaddition to such person's base pension, a cost-of-living adjustment in anamount not to exceed three percent of such person's base pension during anyone year:

(1) Every member who is retired and receiving a base pension from theretirement system;

(2) Every surviving spouse who is receiving a base pension from theretirement system; and

(3) Every child who, under subsection 2 of section 86.1250, isreceiving the benefit, or a portion thereof, which would be payable to asurviving spouse of the member who was such child's parent.

2. Upon the death of a member who has been retired and receiving apension and who dies after September 28, 1987, the surviving spouse of suchmember entitled to receive a base pension under section 86.1240 or childrenof such member entitled to receive a base pension under subsection 2 ofsection 86.1250 shall receive an immediate percentage cost-of-livingadjustment to their respective base pension equal to the total percentagecost-of-living adjustments received during such member's lifetime underthis section, except that the adjustment provided by this subsection shallnot be made to a base pension calculated under either subdivision (1) orparagraph (b) of subdivision (2) of subsection 2 of section 86.1240, eitherfor a surviving spouse or for a child or children entitled to a basepension measured by the pension to which a qualified surviving spouse wouldbe entitled, wherein such base pension is determined by a percentage of theamount being received by the deceased member at death.

3. For purposes of this section, the term "base pension" shall mean:

(1) For a member, the pension computed under the provisions of thelaw as of the date of retirement without regard to cost-of-livingadjustments, as adjusted, if applicable, for any election made undersection 86.1210, but in all events not including any supplemental benefitunder section 86.1230;

(2) For a surviving spouse, the base pension calculated for suchspouse in accordance with the provisions of section 86.1240, including anycompensation as a consultant to which such surviving spouse is entitledunder said section in lieu of a pension thereunder, but not including anysupplemental benefit under section 86.1230; and

(3) For a member's surviving child who is entitled to receive part orall of the pension which would be received by the surviving spouse, ifliving, the base pension calculated for such surviving spouse in accordancewith the provisions of section 86.1240, including any compensation as aconsultant to which such spouse would be entitled under said section, ifliving, divided by the number of surviving children entitled to share insuch pension under subsection 2 of section 86.1250.

4. The cost-of-living adjustment shall be an increase or decreasecomputed on the base pension amount by the retirement board in an amountthat the board, in its discretion, determines to be satisfactory, but in noevent shall the adjustment be more than three percent or reduce the pensionto an amount less than the base pension. In determining and granting thecost-of-living adjustments, the retirement board shall adopt such rules andregulations as may be necessary to effectuate the purposes of this section,including provisions for the manner of computation of such adjustments andthe effective dates thereof. The retirement board shall provide for suchadjustments to be determined once each year and granted on a date or datesto be chosen by the board, and may apply such adjustments in full tomembers who have retired during the year prior to such adjustments but whohave not been retired for one full year and to the surviving spouse orapplicable children of a member who has died during the year prior to suchadjustments.

5. The determination of whether the retirement system will remainactuarially sound shall be made at the time any cost-of-living adjustmentis granted. If at any time the retirement system ceases to be actuariallysound, pension payments shall continue as adjusted by increases theretoforegranted. A member of the retirement board shall have no personal liabilityfor granting increases under this section if that retirement board memberin good faith relied and acted upon advice of a qualified actuary that theretirement system would remain actuarially sound.

6. If any benefit under subsection 1 of section 86.1250 on August 27,2005, would be reduced by application of this section, such benefit shallcontinue thereafter without reduction, but any benefit so continued shallterminate at the time prescribed in subsection 1 of section 86.1250.

(L. 2005 H.B. 323)