2006 Louisiana Laws - RS 11:1145 — Cost-of-living adjustment for retirees and beneficiaries

§1145.  Cost-of-living adjustment for retirees and beneficiaries

A.(1)  The Board of Trustees of the Louisiana School Employees' Retirement System may provide, from surpluses of the system, a supplementary cost-of-living adjustment to retirees, beneficiaries, and survivors, with payments to be effective January first each year.

(2)  The supplemental cost-of-living adjustments shall be computed on the basis of the benefit being received at the time that the cost-of-living adjustment is to be paid.

(3)  The supplemental cost-of-living adjustments shall be computed on the basis of the benefit being received unless the benefit is less than one hundred dollars and the retiree does not have a reciprocal recognition of service in effect, in which case the cost-of-living adjustment shall be computed as though it were one hundred dollars.

(4)  The supplemental cost-of-living adjustment shall be a monthly increase in the benefit of each recipient determined in accordance with the formula "X(A+B+C)", where "A" is equal to the number of years of credited service accrued at retirement or at death of the member or retiree, "B" is equal to the number of years that have elapsed since retirement or since the death of the member or retiree to June thirtieth of the initial year of such increase, "C" is the number of years in excess of thirty years of active service, and "X" is equal to one dollar.  If there are not sufficient funds available to fund "X" at the level of one dollar, then "X" shall be a variable value in accordance with the amount of funds that are available to pay the cost-of-living adjustment.  In addition to this cost-of-living adjustment, and subject to the availability of funds, a supplemental cost-of-living adjustment shall be paid to all retirees and beneficiaries who are at least age sixty-five, which shall consist of an amount equal to two percent of the benefit being received on the effective date of such adjustment.  The determination of the availability of funds for the payment of the cost-of-living adjustment shall be made by the system's actuary, subject to the approval of the legislative actuary.

B.  The supplemental monthly cost-of-living adjustments provided in Subsection A of this Section may be adjusted or suspended by the board of trustees of the system at any time that it determines that the investment earnings of the system are not sufficient to pay for said supplemental benefits.  In addition, the board of trustees shall have the authority to adopt such rules and regulations as are necessary to implement the provisions of this Section.

Added by Acts 1970, No. 51, §6; Redesignated from R.S. 17:913.1 by Acts 1991, No. 74, §3, eff. June 25, 1991; Acts 1992, No. 125, §1; Acts 1993, No. 713, §1, eff. Jan. 1, 1994; Acts 1993, No. 719, §1, eff. Jan. 1, 1994; Acts 1999, No. 278, §1, eff. July 12, 1999.