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REFERENCE TITLE: EORP; cost-of-living adjustment. |
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State of Arizona House of Representatives Fifty-third Legislature Second Regular Session 2018
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HB 2545 |
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Introduced by Representative Livingston
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AN ACT
Repealing sections 38-818, 38-818.01, 38-818.02, 38-818.03 and 38-819, Arizona Revised Statutes; Amending Title 38, chapter 5, article 3, Arizona Revised Statutes, by adding section 38-818.04; relating to the elected officials' retirement plan.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Repeal
Sections 38-818, 38-818.01, 38-818.02, 38-818.03 and 38-819, Arizona Revised Statutes, are repealed.
Sec. 2. Title 38, chapter 5, article 3, Arizona Revised Statutes, is amended by adding section 38-818.04, to read:
38-818.04. Cost‑of‑living adjustment
A. Each retired member or survivor of a retired member is eligible to receive a compounding cost‑of‑living adjustment in the base benefit as provided in this section. The first payment under this section shall be made immediately following the first year the cost‑of‑living adjustment specified in subsection C of this section is paid. The cost‑of‑living adjustment shall be made on July 1 each year thereafter.
B. A retired member or a survivor of a retired member shall receive annually a cost-of-living adjustment in the base benefit based on the average annual percentage change in the metropolitan Phoenix‑Mesa consumer price index published by the United States department of labor, bureau of labor statistics, with the immediately preceding year as the base year for making the determination, not to exceed annually two percent of the retired member's or survivor's base benefit.
C. In the first year of a member's retirement, the cost-of-living adjustment specified in subsection B of this section shall be prorated based on the date of retirement.
D. The plan actuary shall include the projected cost of providing the cost‑of‑living adjustment specified in subsection B of this section in the calculation of normal cost and accrued liability.
Sec. 3. Conditional enactment
Sections 38-818, 38-818.01, 38-818.02, 38-818.03 and 38-819, Arizona Revised Statutes, as repealed by this act, and section 38‑818.04, Arizona Revised Statutes, as added by this act, do not become effective unless the Constitution of Arizona is amended as prescribed in House concurrent resolution ___, fifty‑third legislature, second regular session, by vote of the people at the next general election.