Arizona Laws 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.
Terms Used In Arizona Laws 38-818.04
- Determination: means a written document that indicates to a participant and alternate payee whether a domestic relations order qualifies as a plan approved domestic relations order. See Arizona Laws 38-801
- Plan: means the elected officials' retirement plan. See Arizona Laws 38-801
- Retired member: means a person who is being paid a pension based on the person's credited service as a member of the plan. See Arizona Laws 38-801
- United States: includes the District of Columbia and the territories. See Arizona Laws 1-215
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.