H.B. 258

1

PUBLIC SAFETY RETIREMENT
2 COST-OF-LIVING ADJUSTMENT
3 1999 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: James R. Gowans
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

28 the beneficiary.
29 Section 2. Section 49-4a-601 is amended to read:
30 49-4a-601. Annual cost-of-living adjustment.
31 (1) The retirement office shall compute and pay, upon approval by the board, an annual
32 cost-of-living adjustment to all retired members after the members have been retired one year. The
33 adjustment shall be equal to the decrease in the purchasing power of the dollar during the
34 preceding year, as measured by the Consumer Price Index, U.S. City Average, prepared by the
35 United States Bureau of Labor Statistics, and shall be limited to a maximum of [2.5%] 4% of the
36 retirant's or beneficiary's retirement allowance at the time of retirement. Decreases in the
37 purchasing power of the dollar exceeding [2.5%] 4% annually shall be accumulated and used in
38 subsequent allowances when the cost-of-living adjustment is less than [2.5%] 4%.
39 (2) The cost-of-living adjustment shall be reduced if the index shows a decline of 4% or
40 more during any period of more than one year. These reductions may not exceed 2% per year
41 based upon the original retirement allowance. Payments made under this section shall be a part
42 of the retired member's allowance. Payments and adjustments for the retirant shall also apply to
43 the beneficiary.
44 Section 3. Effective date.
45 This act takes effect on July 1, 1999.




Legislative Review Note
as of 1-22-99 11:39 AM

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

Office of Legislative Research and General Counsel