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2010 Retiree COLA

At the Regular Board Meeting on December 17, 2009, the System's actuary informed Trustees that he could not recommended a Cost of Living Adjustment (COLA) be paid this year. Section 6.01(d)(3) of the state law requires that "...The cost-of-living increase presented for approval by the board must be approved by the System's actuary." The actuary was not willing to approve a January 1, 2010 COLA because: (1) the actual amortization period of 35 years as of the most recently completed actuarial valuation date (December 31, 2008) is above the 30 year preferable range, (2) the projected amortization period for the December 31, 2009 valuation is estimated above the 30 year preferable range if a January 1, 2010 COLA were approved, and (3) the projected annual valuations for the next four years beginning December 31, 2009 reveal an increasing trend in the future amortization periods. While our Board and Staff regret to inform you of this, they ask you to keep in mind the financial stability of your System is of the utmost importance to them and future increases will be evaluated. Holiday greetings go out to everyone from the Board and Staff for a safe and happy Holiday Season with a prosperous New Year.

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