86.1590. Cost-of-living adjustments--base pension defined. - Missouri Statutes

Cost-of-living adjustments--base pension defined.

86.1590. 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 fromthis retirement system; and

(2) Every surviving spouse who is receiving a base pension from thisretirement system.

2. Upon the death of a member who has been retired and receiving apension, and who dies after August 28, 2001, the surviving spouse of suchmember entitled to receive a base pension under section 86.1610 shallreceive an immediate percentage cost-of-living adjustment to his or herbase pension equal to the total percentage cost-of-living adjustmentsreceived during such member's lifetime under this section, but suchadjustment shall not be deemed to change the base pension amount to whichsubsequent cost-of-living adjustments may be made.

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 optional elections madeunder sections 86.1540 and 86.1580, but in all events not including anysupplemental benefit under section 86.1600;

(2) For a surviving spouse whose pension is prescribed by section86.1610, the base pension calculated for such spouse in accordance with theprovisions of section 86.1610, including any compensation as a consultantto which such surviving spouse is entitled under said section in lieu of apension, but not including any supplemental benefit under section 86.1600;

(3) For a surviving spouse entitled to the continuation of anoptional benefit elected under subsection 3 of section 86.1540, the basepension determined in accordance with subdivision (3) of subsection 3 ofsection 86.1540.

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 of amember who has died during the year prior to such adjustments.

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.

(L. 2005 H.B. 323)