§ A8.526-2

COST OF LIVING ADJUSTMENT IN ALLOWANCES ON AND AFTER JANUARY 10, 2009

a.

Notwithstanding the provisions of Section A8.526 or any other provision of the Charter to the contrary, effective January 10, 2009, each retirement allowance payable which is not subject to change when the salary rate of any member is changed shall be adjusted according to the provisions of this Section A8.526-2 and not Section A8.526.

b.

(1) Funds necessary for the payment of any increase in allowances pursuant to this Section A8.526-2 that are payable to, or on account of, members who retired or died, shall be provided from the City’s accumulated contributions held by the system on account of such members. The City’s contributions shall be determined on the basis of a normal contribution rate which shall be computed as a level percentage of compensation which, when applied to the future compensation of the average new member entering the system, together with the required member contribution, will be sufficient to provide for the payment of all prospective benefits of such member.

(2) Any increase in allowances payable which are not funded by the City’s accumulated contributions held by the system shall be funded by contributions of members entitled to said allowances, which shall be at rates which are in addition to the rates of contribution otherwise provided by Charter or ordinance, provided that a member’s rate of contribution shall not exceed one-half of one percent of his or her monthly compensation. The contributions made under this section by any member shall be credited together with regular interest thereon to his or her individual account and shall be subject to the same Charter and ordinance provisions relating to accumulated contributions of the member, including withdrawal and death benefits other than death allowances, provided, however, that upon his or her retirement or death, such accumulated contributions and interest shall not be applied to provide a part of the retirement benefits payable to him or her on the death allowance benefits payable on account of his or her death otherwise provided by Charter or ordinance, but instead shall be held, together with the accumulated contributions made by the City pursuant to this Subsection (b)(3), with interest thereon, to provide the benefits under this Section A8.526-2.

(3) The rates of contribution of members and the City, as provided herein, shall be fixed by the retirement board from time to time as it determines necessary.

c.

(1) The retirement board shall determine, prior to April 1 of each year, the percentage of increase or decrease in the cost of living during the preceding calendar year, as shown by the then current Consumer Price Index. All Items, San Francisco (1957-59=100), issued by the U.S. Bureau of Labor Statistics and published in the Monthly Labor Review or a successor publication. The cost of living adjustments as hereinafter provided shall be based on the percentage of such increase or decrease.

(2) Notwithstanding any other Charter or ordinance provision governing the Retirement System, effective January 10, 2009, every retirement or death allowance payable to, or on account of any member who retires or dies as a member of the system or who has retired or died as such a member, except allowances subject to change when the salary rate of any member is changed, shall be increased or decreased as of July 1, 2009, and on July 1, of each succeeding year by an amount equal to the percentage, as determined in Subsection (c)(1) multiplied by the monthly allowance payable on June 30 of that calendar year.

(3) The percentage of increase or decrease in each such allowance shall be the percentage which is determined by the retirement board to approximate to the nearest one percent increase or decrease in the cost of living during the preceding calendar year.

(4) No such adjustment in any year shall exceed two percent of said allowance: provided, however, that no allowance shall be reduced below the amount being received by the member or the member’s beneficiary on July 1, 1968, or on the effective date the member began to receive the allowance, whichever is later.

d.

(1) Commencing with the effective date of this Section A8.526-2, if the percentage of increase or decrease in the cost of living in any calendar year, as determined to the nearest one percent by the retirement board, were to exceed two percent as compared with the cost of living in the next preceding calendar year, the percentage of increase or decrease in the cost of living in excess of two percent, shall be accumulated to provide increases or decreases in the cost of living in each succeeding calendar year.

History

(Added by Proposition B, 6/3/2008)

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