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S.B. 134
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PUBLIC SAFETY RETIREES - COST OF
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LIVING ALLOWANCE
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2000 GENERAL SESSION
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STATE OF UTAH
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Sponsor: Mike Dmitrich
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AN ACT RELATING TO PENSIONS; INCREASING THE COST-OF-LIVING ALLOWANCE
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FOR MEMBERS OF THE PUBLIC SAFETY RETIREMENT SYSTEMS; AND PROVIDING
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AN EFFECTIVE DATE.
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This act affects sections of Utah Code Annotated 1953 as follows:
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AMENDS:
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49-4-601, as last amended by Chapter 31, Laws of Utah 1997
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49-4a-601, as enacted by Chapter 260, Laws of Utah 1989
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
49-4-601
is amended to read:
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49-4-601. Annual cost-of-living adjustment.
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(1) The retirement office shall compute and pay, upon approval by the board, an annual
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cost-of-living adjustment to all retired members after the members have been retired one year. The
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adjustment shall be equal to the decrease in the purchasing power of the dollar during the
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preceding year, as measured by the Consumer Price Index, U.S. City Average, prepared by the
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United States Bureau of Labor Statistics, and shall be limited to a maximum of [2.5%] 4% of the
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retirant's or beneficiary's retirement allowance at the time of retirement. Decreases in the
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purchasing power of the dollar exceeding [2.5%] 4% annually shall be accumulated and used in
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subsequent allowances when the cost-of-living adjustment is less than [2.5%] 4%.
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(2) The cost-of-living adjustment shall be reduced if the index shows a decline of 4% or
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more during any period of more than one year. These reductions may not exceed 2% per year
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based upon the original retirement allowance. Payments made under this section shall be a part
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of the retired member's allowance. Payments and adjustments for the retirant shall also apply to
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the beneficiary.
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Section 2.
Section
49-4a-601
is amended to read:
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49-4a-601. Annual cost-of-living adjustment.
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(1) The retirement office shall compute and pay, upon approval by the board, an annual
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cost-of-living adjustment to all retired members after the members have been retired one year. The
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adjustment shall be equal to the decrease in the purchasing power of the dollar during the
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preceding year, as measured by the Consumer Price Index, U.S. City Average, prepared by the
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United States Bureau of Labor Statistics, and shall be limited to a maximum of [2.5%] 4% of the
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retirant's or beneficiary's retirement allowance at the time of retirement. Decreases in the
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purchasing power of the dollar exceeding [2.5%] 4% annually shall be accumulated and used in
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subsequent allowances when the cost-of-living adjustment is less than [2.5%] 4%.
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(2) The cost-of-living adjustment shall be reduced if the index shows a decline of 4% or
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more during any period of more than one year. These reductions may not exceed 2% per year
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based upon the original retirement allowance. Payments made under this section shall be a part
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of the retired member's allowance. Payments and adjustments for the retirant shall also apply to
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the beneficiary.
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Section 3. Effective date.
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This act takes effect on July 1, 2000.
Legislative Review Note
as of 1-19-00 3:55 PM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.