Bill Summaries: H876 1% COLA/BONUS/TSERS/FUNDS.

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  • Summary date: Apr 17 2019 - View Summary

    Adds the following provisions pertaining to members of the Teachers' and State Employees' Retirement System, the Judicial Retirement System, and the Legislative Retirement System (GS 135-5, GS 135-65, and GS 120-4.22A, respectively).

    Provides a 1% increase of the retirement allowance from and after July 1, 2019, calculated from the allowance payable on June 1, 2019, for beneficiaries whose retirement commenced on or before July 1, 2018, and prorated based upon the number of months that a retirement allowance was paid for beneficiaries whose retirement commenced after July 1, 2018, but before June 30, 2019.

    Also provides a one-time cost of living supplement payment to be made on or before October 1, 2019, to or on account of beneficiaries who are living as of September 1, 2019, and whose retirement commenced on or before September 1, 2019. Sets the payment amount at 1% of the retirement allowance payable on September 1, 2019, and does not require prorating for the date of retirement. Requires payment to the member's legal representative if the beneficiary dies before the payment is made. Clarifies that no member is deemed to have acquired a vested right to any future supplemental payments. 

    Appropriates from the General Fund to the Reserve for Retiree Cost-of-Living Adjustments (Reserve) $48 million in recurring funds for each of the 2019-20 and 2020-21 fiscal years to implement the adjustment.

    Appropriates from the General Fund to the Reserve $37 million in nonrecurring funds for the 2019-20 fiscal year to implement the one-time supplement. Authorizes the Retirement Systems Division of the Department of the State Treasurer to increase receipts from the retirement assets of the corresponding retirement system or pay costs associated with administration of the payment directly from the retirement assets.

    Effective July 1, 2019.