2005 Idaho Code - 59-1355 — POST RETIREMENT ALLOWANCE ADJUSTMENTS

                                  TITLE  59
                          PUBLIC OFFICERS IN GENERAL
                                  CHAPTER 13
                      PUBLIC EMPLOYEES RETIREMENT SYSTEM
    59-1355.  POST RETIREMENT ALLOWANCE ADJUSTMENTS. (1) Each retirement
allowance payment shall, subject to the provisions of this section, equal the
inflation factor for the adjustment year of payment multiplied by the amount
of the retirement allowance payment for March of the previous year. During any
adjustment year for which the ratio of the consumer price index for the index
month of the previous year to the consumer price index for the index month of
the second previous year is not more than one hundred one per cent (101%), the
inflation factor shall be such ratio or ninety-four per cent (94%), whichever
is greater, which inflation factor shall not be subject to legislative
approval. Otherwise the inflation factor during such adjustment year shall be
one hundred one per cent (101%), except that the board, with legislative
approval, may put into effect a greater factor which is no more than such
ratio or one hundred six per cent (106%), whichever is smaller, if it finds
the value of the actuarial assets of the system to be no less than its
actuarial liabilities, including those created by the increased factor. The
actuarial assets comprise the sum of the actuarial present value of the
amortization payments determined in accordance with the requirements of
section 59-1322(5), Idaho Code, plus the amounts determined in paragraphs
(e)(ii), (e)(iii), (e)(iv) and (g) of section 59-1322(4), Idaho Code. The
actuarial liabilities are as defined in paragraph (e)(i) of section
59-1322(4), Idaho Code. The board's proposed inflation factor for any
adjustment year shall be communicated by letter to the legislature by not
later than January 15 prior to that year.
    (2)  During an adjustment year following one in which there was at least
one (1) retirement allowance payment but none in March, each retirement
allowance payment shall equal the partial factor multiplied by the amount of
the monthly retirement allowance payment in the earlier year. The partial
factor shall equal 1.000 plus one-twelfth (1/12) of the product of the number
of months in the earlier adjustment year in which member contributions were
not made and the excess, if any, of the inflation factor for the later year
over 1.000.
    (3)  During an adjustment year following one in which there was no
retirement allowance payment, each retirement allowance payment shall equal
the initial retirement allowance multiplied by the bridging factor between the
first day of the month following the member's final contribution and the date
of the first retirement allowance payment.
    (a)  Except as provided in paragraph (b) of this subsection, the bridging
    factor between any two (2) dates shall be the ratio of the amounts of
    retirement allowance payable on the two (2) dates for any member who
    retired on the earlier date immediately following his final contribution.
    (b)  For any member not making a final contribution subsequent to 1974
    whose initial retirement allowance is a minimum allowance provided in
    section 59-1342(1)(b) or 59-1342(2)(b), Idaho Code, the bridging factor
    shall be computed as if the member had made his final contribution in
    1974.
    (4)  The consumer price index shall be that for all urban consumers
published by the bureau of labor statistics, United States department of
labor.
    (5)  The adjustments provided under this section shall in no event reduce
a benefit payment below its initial amount.
    (6)  An adjustment year shall extend from March through the following
February. The index month is October for adjustment years commencing before
March, 1990, and is August for subsequent adjustment years.
    (7)  If, by the forty-fifth day of any regular legislative session, the
legislature has not adopted a concurrent resolution rejecting or amending the
proposed adjustments of the board allowed in subsections (1) and (8) of this
section, such action on the part of the legislature shall constitute
legislative approval of the board's adjustments.
    (8)  Notwithstanding other provisions of this section, the board may grant
a postretirement allowance adjustment for any previous year or years up to the
full amount of the increase in the consumer price index for that year or those
years, as provided in subsection (7) above.