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| SPONSOR: | Heaton | DATE TYPED: | 02/14/99 | HB | 221 | ||
| SHORT TITLE: | Educational Retirement Ad Hoc COLA | SB | |||||
| ANALYST: | Eaton | ||||||
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY99 | FY2000 | |||
| NFI | ERA Retirement | |||
(Parenthesis ( ) Indicate Revenue Decreases)
SOURCES OF INFORMATION
Educational Retirement Board (ERB)
SUMMARY
Synopsis of Bill
This bill will increase current retiree benefits by the following formula:
Two dollars ($2.00) a month for every year of retirement.
One dollar ($1.00) a month for every year of service credit.
The benefit increase will continue for the lifetime of the member.
FISCAL IMPLICATIONS
The Educational Retirement Board (ERB) reports that the cost of this one-time increase in benefits may be funded entirely without increasing contributions or jeopardizing the actuarial soundness of the fund.
Assuming twenty-five years of service and twenty years of retirement, the benefit increase annually will be $780. The formula as written will benefit older retirees more than younger retirees.
JBE/gm