Mo. Code Regs. tit. 16 § 10-5.055
Current through Register Vol. 49, No.12, June 17, 2024
Section 16 CSR 10-5.055 - Cost-of-Living AdjustmentsPURPOSE: This rule provides for the implementation of cost-of-living adjustments to teachers and eligible beneficiaries as set forth in subdivision 169.070.12 and 13, RSMo.
(1) The board of trustees, at the August meeting or as soon as sufficient data is available after the end of the fiscal year, shall determine any cost-of-living adjustment to be effective with the January payment following the close of the fiscal year. The board shall consider the recommendation of the system's actuary in determining the amount of adjustment to be made.(2) The recommendation of the actuary and the determination of the board shall take into consideration data from the National Consumer Price Index (CPI) and may include other pertinent data available. The cost-of-liv-ing change in the CPI shall be the June CPI of the fiscal year divided by the June CPI of the preceding fiscal year minus 1 and expressed as a percent. Example: June 1976 CPI, 170.1; June 1975 CPI, 160.6 (170.1 ÷ 160.6) - 1 = .059 = 5.9%.
(3) When the board of trustees determines that a cost-of-living increase shall be granted, the increase shall be added to the allowance of any person receiving a service or disability retirement allowance, or beneficiary allowance pursuant to section 169.070.3, RSMo. The initial increase in a retiree's allowance shall not be granted before January 1, 1977, or until the retiree has been retired four (4) January firsts; or in the case of any member retiring on or after July 1, 2000, the initial increase in the retiree's allowance shall not be granted until the retiree has been retired three (3) January firsts; or in the case of any member retiring on or after July 1, 2001, the initial increase in the retiree's allowance shall not be granted until the retiree has been retired two (2) January firsts. A designated beneficiary of a deceased retiree who is receiving an allowance as provided in section 169.070.3, RSMo, will be eligible for an increase at the time the deceased retiree would have been eligible for an increase had he or she lived.(4) If the cost-of-living decreases as determined by the board of trustees, the allowance which had previously been increased under the provisions of section 169.070.12, RSMo may be decreased by a percentage not to exceed the percentage of reduction in the cost-of-living as determined by the board, but the decrease or total of such decreases shall not reduce the allowance below that received at retirement, or on January 31, 1976, whichever is later. In determining whether a decrease shall be made, consideration shall be given not only to cost-of-living data as shown by the National CPI for the preceding fiscal year, but also to the total net economic change as reflected by the National CPIs of all years since the retiree or eligible beneficiary under section 169.070.3, RSMo first qualified for a cost-of-living increase. AUTHORITY: section 169.020, RSMo 2000.* Original rule filed Jan. 5, 1977, effective May 1, 1977. Amended: Filed June 10, 1980, effective Sept. 15, 1980. Amended: Filed Aug. 9, 1999, effective Feb. 29, 2000. Amended: Filed Aug. 21, 2000, effective Feb. 28, 2001. Amended: Filed Aug. 15, 2001, effective Feb. 28, 2002. *Original authority: 169.020, RSMo 1945, amended 1951, 1953, 1967, 1973, 1983, 1990, 1995, 1996, 1998.