Section 30. Supplemental Benefits.--(a) Every member who is in receipt of a county annuity shall receive annually a cost-of-living increase which shall be the product of the retirement allowance determined at the time of retirement less any withdrawal of a member's annuity under section 15.1 of this act and prior to optional modification or minimum allowance and the following percentages as determined by the calendar year in which retirement became effective:
Year of
Retirement
Percentage
Factor
Year of
Retirement
Percentage
Factor
1938
136%
1953
23%
1939
135%
1954
23%
1940
134%
1955
22%
1941
122%
1956
20%
1942
100%
1957
16%
1943
89%
1958
14%
1944
86%
1959
12%
1945
82%
1960
10%
1946
68%
1961
9%
1947
47%
1962
8%
1948
37%
1963
7%
1949
37%
1964
6%
1950
36%
1965
4%
1951
26%
1966
1%
1952
24%
(b) (1) The cost-of-living increase shall be reviewed at least once in every three years by the board which may adjust the current monthly benefit by the percentages in accordance with cost-of-living index at the time of review, provided that the adjustment need not be calculated retroactively to the date of the previous cost-of-living increase approved by the board under this section and need not apply the cost-of-living index change for each year since the previous cost-of-living increase. Any adjustment approved under this paragraph shall become effective January 1 of the calendar year following the year in which the adjustment is approved.
(2) Before approving any cost-of-living adjustment, the board shall have an actuarial note prepared regarding the proposed adjustment. A cost-of-living adjustment shall only be provided if the county retirement system calculates a funded ratio based upon an entry age normal methodology of eighty per cent or higher after the actuarial cost of the adjustment is determined. Any county retirement system that utilizes an accounting method that does not determine a funded ratio based upon an entry age normal methodology shall, each year, use an entry age normal actuarial cost methodology to calculate a funded ratio in order to determine if the fund meets the eighty per cent or higher funding level. The funding level calculation shall be reported to the Public Employee Retirement Commission in conjunction with established reporting requirements.
((b) amended Nov. 24, 2015, P.L.230, No.63)
(30 amended July 18, 1986, P.L.1410, No.126)