Cost-of-Living Adjustment

PURPOSE: This rule describes the eligibility and amount of any cost-of-living adjustment. (1) Eligibility for Annual Cost-of-Living Adjustment. To be eligible to receive any cost-of-living adjustment (COLA), adopted by the board pursuant to section 50.1070, RSMo, a retired participant must meet the following criteria: (A) Is presently receiving an annuity, even if the annuity is payable in accordance with the prior plan, and has been receiving such annuity since at least July 1 of the previous year; and (B) Has not waived his or her right to receive the COLA increase. (2) The amount of the COLA increase for a year shall be determined by the board in the first calendar quarter of each year, based on the excess of the consumer price index for the preceding calendar year over the consumer price index for the calendar year immediately prior thereto. Notwithstanding the preceding sentence, this automatic increase shall not exceed one percent (1%) per year. The total increase in the amount of benefits received pursuant to the provisions of this section shall not exceed fifty percent (50%) of the participant’s accrued benefit determined as of his or her most recent separation from service. (3) Any COLA approved by the board will be payable to eligible retirees monthly, including those who retired under the terms of the prior plan, commencing on July 1 of any given year, following the board’s determination of the appropriate increase. The application of any COLA with regard to retired and rehired members is shown in Table 1 to 16 CSR 50-2.150. AUTHORITY: section 50.1032, RSMo 2016.* Original rule filed Sept. 29, 2000, effective March 30, 2001. Amended: Filed June 29, 2017, effective Dec. 30, 2017. *Original authority: 50.1032, RSMo 1995.