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S.B. 92

             1     

PUBLIC SAFETY RETIREMENT AMENDMENTS

             2     
2001 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Mike Dmitrich

             5      This act modifies the Utah State Retirement Act to increase the cost-of-living allowance for
             6      members of the public safety retirement systems. This act takes effect on July 1, 2001.
             7      This act affects sections of Utah Code Annotated 1953 as follows:
             8      AMENDS:
             9          49-4-601, as last amended by Chapter 31, Laws of Utah 1997
             10          49-4a-601, as enacted by Chapter 260, Laws of Utah 1989
             11      Be it enacted by the Legislature of the state of Utah:
             12          Section 1. Section 49-4-601 is amended to read:
             13           49-4-601. Annual cost-of-living adjustment.
             14          (1) The retirement office shall compute and pay, upon approval by the board, an annual
             15      cost-of-living adjustment to all retired members after the members have been retired one year. The
             16      adjustment shall be equal to the decrease in the purchasing power of the dollar during the
             17      preceding year, as measured by the Consumer Price Index, U.S. City Average, prepared by the
             18      United States Bureau of Labor Statistics, and shall be limited to a maximum of [2.5%] 4% of the
             19      retirant's or beneficiary's retirement allowance at the time of retirement. Decreases in the
             20      purchasing power of the dollar exceeding [2.5%] 4% annually shall be accumulated and used in
             21      subsequent allowances when the cost-of-living adjustment is less than [2.5%] 4%.
             22          (2) The cost-of-living adjustment shall be reduced if the index shows a decline of 4% or
             23      more during any period of more than one year. These reductions may not exceed 2% per year
             24      based upon the original retirement allowance. Payments made under this section shall be a part
             25      of the retired member's allowance. Payments and adjustments for the retirant shall also apply to
             26      the beneficiary.
             27          Section 2. Section 49-4a-601 is amended to read:


             28           49-4a-601. Annual cost-of-living adjustment.
             29          (1) The retirement office shall compute and pay, upon approval by the board, an annual
             30      cost-of-living adjustment to all retired members after the members have been retired one year. The
             31      adjustment shall be equal to the decrease in the purchasing power of the dollar during the
             32      preceding year, as measured by the Consumer Price Index, U.S. City Average, prepared by the
             33      United States Bureau of Labor Statistics, and shall be limited to a maximum of [2.5%] 4% of the
             34      retirant's or beneficiary's retirement allowance at the time of retirement. Decreases in the
             35      purchasing power of the dollar exceeding [2.5%] 4% annually shall be accumulated and used in
             36      subsequent allowances when the cost-of-living adjustment is less than [2.5%] 4%.
             37          (2) The cost-of-living adjustment shall be reduced if the index shows a decline of 4% or
             38      more during any period of more than one year. These reductions may not exceed 2% per year
             39      based upon the original retirement allowance. Payments made under this section shall be a part
             40      of the retired member's allowance. Payments and adjustments for the retirant shall also apply to
             41      the beneficiary.
             42          Section 3. Effective date.
             43          This act takes effect on July 1, 2001.




Legislative Review Note
    as of 12-5-00 8:22 AM


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

Office of Legislative Research and General Counsel


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