S.B. 139

1

PUBLIC SAFETY RETIREMENT COST OF
2 LIVING ADJUSTMENT
3 1998 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: L. Alma Mansell
6 AN ACT RELATING TO PENSIONS; INCREASING THE COST-OF-LIVING ALLOWANCE
7 FOR MEMBERS OF THE PUBLIC SAFETY RETIREMENT SYSTEMS; AND PROVIDING
8 AN EFFECTIVE DATE.
9 This act affects sections of Utah Code Annotated 1953 as follows:
10 AMENDS:
11 49-4-601, as last amended by Chapter 31, Laws of Utah 1997
12 49-4a-601, as enacted by Chapter 260, Laws of Utah 1989
13 Be it enacted by the Legislature of the state of Utah:
14 Section 1. Section 49-4-601 is amended to read:
15 49-4-601. Annual cost-of-living adjustment.
16 (1) The retirement office shall compute and pay, upon approval by the board, an annual
17 cost-of-living adjustment to all retired members after the members have been retired one year. The
18 adjustment shall be equal to the decrease in the purchasing power of the dollar during the
19 preceding year, as measured by the Consumer Price Index, U.S. City Average, prepared by the
20 United States Bureau of Labor Statistics, and shall be limited to a maximum of [2.5%] 4% of the
21 retirant's or beneficiary's retirement allowance at the time of retirement. Decreases in the
22 purchasing power of the dollar exceeding [2.5%] 4% annually shall be accumulated and used in
23 subsequent allowances when the cost-of-living adjustment is less than [2.5%] 4%.
24 (2) The cost-of-living adjustment shall be reduced if the index shows a decline of 4% or
25 more during any period of more than one year. These reductions may not exceed 2% per year
26 based upon the original retirement allowance. Payments made under this section shall be a part
27 of the retired member's allowance. Payments and adjustments for the retirant shall also apply to

1 the beneficiary.
2 Section 2. Section 49-4a-601 is amended to read:
3 49-4a-601. Annual cost-of-living adjustment.
4 (1) The retirement office shall compute and pay, upon approval by the board, an annual
5 cost-of-living adjustment to all retired members after the members have been retired one year. The
6 adjustment shall be equal to the decrease in the purchasing power of the dollar during the
7 preceding year, as measured by the Consumer Price Index, U.S. City Average, prepared by the
8 United States Bureau of Labor Statistics, and shall be limited to a maximum of [2.5%] 4% of the
9 retirant's or beneficiary's retirement allowance at the time of retirement. Decreases in the
10 purchasing power of the dollar exceeding [2.5%] 4% annually shall be accumulated and used in
11 subsequent allowances when the cost-of-living adjustment is less than [2.5%] 4%.
12 (2) The cost-of-living adjustment shall be reduced if the index shows a decline of 4% or
13 more during any period of more than one year. These reductions may not exceed 2% per year
14 based upon the original retirement allowance. Payments made under this section shall be a part
15 of the retired member's allowance. Payments and adjustments for the retirant shall also apply to
16 the beneficiary.
17 Section 3. Effective date.
18 This act takes effect on July 1, 1998.




Legislative Review Note
as of 1-23-98 10:42 AM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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