Mo. Code Regs. tit. 16 § 20-2.105
Current through Register Vol. 49, No. 18, September 16, 2024
Section 16 CSR 20-2.105 - Redetermination of Allowances During Deflation and Consumer Pricing Indices To Be ConsideredPURPOSE: The proposed amendment clarifies how retiree allowances are redetermined in periods of inflation subsequent to periods of deflation and expands the Consumer Price Indices the LAGERS Board of Trustees may consider in redetermining retiree allowances.
PURPOSE: The purpose of this rule is to [provide Missouri Local Government Employees' Retirement System's (LAGERS') interpretation of] clarify how retiree allowances will be redetermined pursuant to section 70.655.7-.10 et. seq., RSMo, during periods of deflation and which Consumer Pricing Indices may be considered in making the redetermination.
(1) For purposes of calculating the redetermined amount of the allowance as set forth under section 70.655.7-.10 et. seq., RSMo, during periods of deflation, if the annual Consumer Price Index (CPI) is negative, there shall be no actual reduction in the redetermined amount of the retirees' allowances. However, in the next year in which the annual Consumer Price Index (CPI) is positive, the Board of Trustees may consider the cumulative net increase or decrease in the Consumer Price Index (CPI) inclusive of the negative and positive years when redetermining any amount of the retirees' allowances.(2) In order to continue the original intent of the use of the Consumer Price Index, as defined by section 70.655.7, RSMo, the Board of Trustees of the Retirement System may also consider the Consumer Price Index for All Urban Consumers (CPI-U), as determined by the United States Department of Labor, when redetermining any amount of the retirees' allowances. AUTHORITY: section 70.605.21, RSMo Supp. 2009.* Original rule filed Nov. 12, 2009, effective May 30, 2010. Amended by Missouri Register October 1, 2019/Volume 44, Number 19, effective 11/30/2019*Original authority: 70.605.21, RSMo 1967, amended 1974, 1992, 2000, 2003.