Senate Bill 410 Summary

• Establishes annual cost of living adjustments (COLA) for the Public Employees' Retirement Fund (PERF) and Teachers' Retirement Fund (TRF) beginning July 1, 2014.

• COLA calculated by multiplying total pension benefit payments made during preceding fiscal year by the Consumer Price Index for All Urban Consumers (CPI-U) annual percentage change, then dividing by total number of members, survivors, and beneficiaries receiving monthly benefits.

• Adjustments apply only to members who retired or became disabled before January 1 of the immediately preceding fiscal year and are added to pension portion of monthly benefits on December 31 each year.

• Pension benefits cannot be reduced if CPI-U shows negative change; increases apply to both PERF and TRF members and are in addition to any other increases provided by law.

• Increases do not apply to lump sum benefit payments and are based on member's latest retirement or disability date.