Missouri Code of State Regulations › Title 16 - RETIREMENT SYSTEMS › Division 10 - The Public School Retirement System of Missouri › Chapter 5 - Retirement, Options and Benefits › Section 16 CSR 10-5.055 - Cost-of-Living Adjustments

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule provides for the implementation of
				  cost-of-living adjustments to teachers and eligible beneficiaries as set forth
				  in subdivision 169.070.12 and 13, RSMo.
(1) The board of trustees, at the August
				meeting or as soon as sufficient data is available after the end of the fiscal
				year, shall determine any cost-of-living adjustment to be effective with the
				January payment following the close of the fiscal year. The board shall
				consider the recommendation of the system's actuary in determining the amount
				of adjustment to be made.
(2) The
				recommendation of the actuary and the determination of the board shall take
				into consideration data from the National Consumer Price Index (CPI) and may
				include other pertinent data available. The cost-of-liv-ing change in the CPI
				shall be the June CPI of the fiscal year divided by the June CPI of the
				preceding fiscal year minus 1 and expressed as a percent. Example:
June 1976 CPI, 170.1; June 1975 CPI, 160.6 (170.1 ÷
				  160.6) - 1 = .059 = 5.9%.
(3) When the board of trustees determines
				that a cost-of-living increase shall be granted, the increase shall be added to
				the allowance of any person receiving a service or disability retirement
				allowance, or beneficiary allowance pursuant to section 169.070.3, RSMo. The
				initial increase in a retiree's allowance shall not be granted before January
				1, 1977, or until the retiree has been retired four (4) January firsts; or in
				the case of any member retiring on or after July 1, 2000, the initial increase
				in the retiree's allowance shall not be granted until the retiree has been
				retired three (3) January firsts; or in the case of any member retiring on or
				after July 1, 2001, the initial increase in the retiree's allowance shall not
				be granted until the retiree has been retired two (2) January firsts. A
				designated beneficiary of a deceased retiree who is receiving an allowance as
				provided in section 169.070.3, RSMo, will be eligible for an increase at the
				time the deceased retiree would have been eligible for an increase had he or
				she lived.
(4) If the
				cost-of-living decreases as determined by the board of trustees, the allowance
				which had previously been increased under the provisions of section 169.070.12,
				RSMo may be decreased by a percentage not to exceed the percentage of reduction
				in the cost-of-living as determined by the board, but the decrease or total of
				such decreases shall not reduce the allowance below that received at
				retirement, or on January 31, 1976, whichever is later. In determining whether
				a decrease shall be made, consideration shall be given not only to
				cost-of-living data as shown by the National CPI for the preceding fiscal year,
				but also to the total net economic change as reflected by the National CPIs of
				all years since the retiree or eligible beneficiary under section 169.070.3,
				RSMo first qualified for a cost-of-living increase.
*Original authority: 169.020, RSMo 1945, amended 1951,
					 1953, 1967, 1973, 1983, 1990, 1995, 1996,
					 1998.