Ga. Comp. R. & Regs. R. 513-5-1-.16 - Post-Retirement Adjustment of Benefits

(1) A cost-of-living increment will be granted two times a year on January 1 and July 1 to be determined in the following manner:

(a) On the July 1 or January 1 following retirement, the average of the Consumer Price Index will be determined. This is the base index for all beneficiaries retiring during the six month period ending on such July 1 or January 1.

(b) As of each subsequent January 1 or July 1, the average of the Consumer Price Index will be determined. This is the current index.

(c) The ratio of Item (b) to Item (a) is determined.

(d) If the ratio in (c) above is equal to or greater than 1.000, the retirement benefits would be adjusted by 1-1/2%.

1. If the percentage determined in (c) above is less than 1.00, indicating a reduction in the Consumer Price Index for the period, the retirement benefit may be reduced by the Board of Trustees if the ratio is less than .975 or, in other words, if the reduction is between 0 and 2-1/2%, no adjustment will be made in the retirement benefit; however, if the reduction is greater than 2-1/2%, the retirement benefit may be adjusted by the Board of Trustees, however, no reduction would be greater than 1-1/2% of the retirement benefit for any period. The beneficiary's retirement benefit, once adjusted, remains constant for the next six months until the next review. In no event will the retirement benefits be reduced by an amount exceeding all previously granted cost-of-living adjustments.

(e) For those retiring from July 1 thru December 1, the subsequent July 1 will be the earliest date for an adjustment to be made. For those retiring from January 1 thru June 1, the subsequent January 1 will be the earliest date for an adjustment to be made.

(f) The average Consumer Price Index (CPI) for a six month period ending on January 1 of any year is defined as the average of the "All Urban Consumers" CPI published by the Bureau of Labor Statistics for the six months ending on the previous October, similarly, the average as of July 1 will be computed based upon the six months ending on the prior April.

(g) Adjustments in benefit will be provided only to a real person who is in receipt of a life annuity with or without related death or survivorship benefits.

Notes

Ga. Comp. R. & Regs. R. 513-5-1-.16

O.C.G.A. Secs. 47-3-126, 47-3-126.2.

Original Rule entitled "Post-Retirement Adjustment of Benefits" was filed on June 9, 1987; effective June 29, 1987. Amended: F. May 27, 1994; eff. June 16, 1994. Amended: F. May 28, 1997; eff. June 17, 1997. Amended: F. Mar. 27, 2003; eff. Apr. 16, 2003.