Effective - 28 Aug 2014, 3 histories
86.1220. Cost-of-living adjustments in addition to base pension. — 1. Provided that the retirement system shall remain actuarially sound, each of the following persons may receive, in addition to such person's base pension, a cost-of-living adjustment in an amount not to exceed three percent of such person's base pension during any one year:
(1) Every Tier I member who is retired and receiving a base pension from the retirement system; and
(2) Every Tier I surviving spouse who is receiving a base pension from the retirement system.
2. Provided that the retirement system shall remain actuarially sound, each of the following persons may receive, in addition to such person's base pension, a cost-of-living adjustment in an amount not to exceed three percent of such person's base pension during any one year as follows:
(1) Every Tier II member who retired with at least thirty-two years of creditable service shall be eligible in the year following retirement; and
(2) Every Tier II member who retired under subsection 1 of section 86.1151 with less than thirty-two years of creditable service shall be eligible in the year following the year in which they would have attained thirty-two years of creditable service had such member remained in active service; and
(3) Every Tier II member who retired under section 86.1180 shall be eligible in the year following retirement; and
(4) Every Tier II member who retired under section 86.1200 shall be eligible in the earlier of the year following the fifth year after retirement or the year following the year in which they would have attained thirty-two years of creditable service had such member remained in active service; and
(5) Every Tier II member who retired under subsection 3 of section 86.1151 shall be eligible in the year following the fifth year after retirement; and
(6) (a) Every Tier II surviving spouse of a member who, at the member's death, was receiving benefits including cost-of-living adjustments shall be eligible in the year following the most recent year when the decedent received a cost-of-living adjustment; and
(b) Every Tier II surviving spouse of a member who, at the member's death, was receiving benefits but who was not yet eligible for cost-of-living adjustments shall be eligible in the year when the decedent member would have become eligible had such decedent survived; and
(c) Every Tier II surviving spouse entitled to the benefit provided in subsection 1 of section 86.1260 shall be eligible in the year following the year of the member's death; and
(d) Every Tier II surviving spouse of a member who died with less than twenty-seven years of creditable service, entitled to benefits provided in subsection 1 of section 86.1240, and who is not eligible for the benefit provided in subsection 1 of section 86.1260, shall be eligible in the year following the fifth year after the member's death; and
(e) Every Tier II surviving spouse of a member who died with twenty-seven or more years of creditable service, entitled to benefits provided in subsection 1 of section 86.1240, and who is not eligible for the benefit provided in subsection 1 of section 86.1260, shall be eligible the later of the year following the year of the member's death or the year following the year in which the member would have attained thirty-two years of creditable service had such member remained in active service.
3. Provided that the retirement system shall remain actuarially sound, every child who, under subsection 2 of section 86.1250, is receiving the benefit, or a portion thereof, which would be payable to a surviving spouse of the member who was such child's parent, may receive each year such cost-of-living adjustment on such benefit as would have been payable on such benefit, or portion thereof, to such surviving spouse if living.
4. Upon the death of a Tier I member who has been retired and receiving a pension and who dies after September 28, 1987, the surviving spouse of such member entitled to receive a base pension under section 86.1240 or children of such member entitled to receive a base pension under subsection 2 of section 86.1250 shall receive an immediate percentage cost-of-living adjustment to their respective base pension equal to the total percentage cost-of-living adjustments received during such member's lifetime under this section, except that the adjustment provided by this subsection shall not be made to a base pension calculated under either subdivision (1) or paragraph (b) of subdivision (2) of subsection 2 of section 86.1240, either for a surviving spouse or for a child or children entitled to a base pension measured by the pension to which a qualified surviving spouse would be entitled, wherein such base pension is determined by a percentage of the amount being received by the deceased member at death.
5. Upon the death of a Tier II member who has been retired and receiving a pension, the surviving spouse of such member entitled to receive a base pension under section 86.1240 or children of such member entitled to receive a base pension under subsection 2 of section 86.1250 shall receive an immediate percentage cost-of-living adjustment to their respective base pension equal to the total percentage cost-of-living adjustments received during such member's lifetime under this section, except that the adjustment provided by this subsection shall not apply for any surviving spouse, or for a child or children entitled to benefits which would be received by a qualified surviving spouse, receiving a benefit pursuant to an election made under subdivision (1) of subsection 2 of section 86.1151.
6. For purposes of this section, the term "base pension" shall mean:
(1) For a member, the pension computed under the provisions of the law as of the date of retirement without regard to cost-of-living adjustments, as adjusted, if applicable, for any election made under subdivision (1) of subsection 2 of section 86.1151 or section 86.1210, but in all events not including any supplemental benefit under section 86.1230 or section 86.1231;
(2) For a surviving spouse, the base pension calculated for such spouse in accordance with the provisions of section 86.1240 or subdivision (3) of subsection 2 of section 86.1151, including any compensation as a consultant to which such surviving spouse is entitled under said section in lieu of a pension thereunder, but not including any supplemental benefit under section 86.1230 or section 86.1231; and
(3) For a member's surviving child who is entitled to receive part or all of the pension which would be received by the surviving spouse, if living, the base pension calculated for such surviving spouse in accordance with the provisions of section 86.1240 or subdivision (3) of subsection 2 of section 86.1151, including any compensation as a consultant to which such spouse would be entitled under said section, if living, divided by the number of surviving children entitled to share in such pension under subsection 2 of section 86.1250.
7. The cost-of-living adjustment shall be an increase or decrease computed on the base pension amount by the retirement board in an amount that the board, in its discretion, determines to be satisfactory, but in no event shall the adjustment be more than three percent or reduce the pension to an amount less than the base pension. In determining and granting the cost-of-living adjustments, the retirement board shall adopt such rules and regulations as may be necessary to effectuate the purposes of this section, including provisions for the manner of computation of such adjustments and the effective dates thereof. The retirement board shall provide for such adjustments to be determined once each year and granted on a date or dates to be chosen by the board, and may apply such adjustments in full to eligible members as provided in subsections 1 and 2 of this section who have retired during the year prior to such adjustments but who have not been retired for one full year and to the surviving spouse or applicable children of a member who has died during the year prior to such adjustments.
8. The determination of whether the retirement system will remain actuarially sound shall be made at the time any cost-of-living adjustment is granted. If at any time the retirement system ceases to be actuarially sound, pension payments shall continue as adjusted by increases theretofore granted. A member of the retirement board shall have no personal liability for granting increases under this section if that retirement board member in good faith relied and acted upon advice of a qualified actuary that the retirement system would remain actuarially sound.
9. If any benefit under subsection 1 of section 86.1250 on August 27, 2005, would be reduced by application of this section, such benefit shall continue thereafter without reduction, but any benefit so continued shall terminate at the time prescribed in subsection 1 of section 86.1250.
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(L. 2005 H.B. 323, A.L. 2013 H.B. 116 merged with H.B. 418, A.L. 2014 H.B. 1301)
Structure Missouri Revised Statutes
Title VII - Cities, Towns and Villages
Chapter 86 - Police Relief and Pension Systems
Section 86.017 - Membership regulations.
Section 86.020 - Service creditable.
Section 86.023 - Administration.
Section 86.027 - Vacancy, how filled — trustees to serve without compensation.
Section 86.033 - Voting — quorum.
Section 86.037 - Board to have exclusive original jurisdiction — judicial review.
Section 86.040 - Chairman, secretary, actuaries.
Section 86.043 - Data and records of the board.
Section 86.047 - Legal adviser and medical board — duties.
Section 86.050 - Actuary — duties.
Section 86.053 - Regular actuarial investigation.
Section 86.057 - Annual valuation of assets and liabilities.
Section 86.060 - Service retirement benefit.
Section 86.067 - Ordinary disability retirement benefit.
Section 86.070 - Allowance on ordinary disability retirement.
Section 86.073 - Accidental disability retirement.
Section 86.077 - Allowance on accidental disability retirement.
Section 86.080 - Reexamination of beneficiaries retired on account of disability.
Section 86.083 - Pension to be reduced, when.
Section 86.087 - Retirement allowance to cease, when.
Section 86.090 - Ordinary death benefit.
Section 86.093 - Accidental death benefit.
Section 86.097 - Return of accumulated contributions.
Section 86.100 - Optional allowances.
Section 86.103 - Pensions offset by compensation benefits.
Section 86.107 - Trustees to manage funds.
Section 86.110 - Interest on funds.
Section 86.113 - Treasurer of city to be custodian of funds — vouchers.
Section 86.117 - Ten percent of fund may be in available cash — how kept.
Section 86.120 - Trustees and employees not to be interested personally in investments.
Section 86.123 - Method of financing.
Section 86.127 - Annuity savings fund.
Section 86.130 - Rates of contribution.
Section 86.133 - Proportionate amount to be deducted from each payroll.
Section 86.137 - Factors in determining deductions.
Section 86.140 - Members deemed to consent to deductions — payable into annuity savings fund.
Section 86.143 - Additional contributions.
Section 86.147 - Annuity reserve fund.
Section 86.150 - Pension accumulation fund.
Section 86.153 - Contributions to and payments from such fund.
Section 86.157 - Actuary to determine normal contribution rate.
Section 86.160 - Accrued liability contribution rate.
Section 86.163 - Amount payable to pension accumulation fund.
Section 86.167 - Accrued liability contribution discontinued, when.
Section 86.170 - Pensions and benefits payable from pension accumulation fund — exceptions.
Section 86.173 - Sum transferred to reserve fund, when.
Section 86.177 - Pension reserve fund.
Section 86.180 - Expense fund.
Section 86.183 - Contributions by city.
Section 86.190 - Exemption from tax and execution.
Section 86.193 - Correction of errors in benefits, adjustments.
Section 86.203 - Establishment of system — name — effective date.
Section 86.210 - Service creditable.
Section 86.213 - Board of trustees to administer — members of board, selection — terms.
Section 86.217 - Vacancy on board, how filled — trustees to receive expenses.
Section 86.220 - Oath of trustees.
Section 86.223 - Quorum, number of trustees constituting — majority vote required, when.
Section 86.227 - Jurisdiction of board — decisions subject to judicial review.
Section 86.230 - Officers, selection — actuaries and employees, appointment, compensation.
Section 86.233 - Records of board — annual report.
Section 86.237 - Legal adviser — medical board — duties.
Section 86.240 - Actuary, duties.
Section 86.247 - Annual valuation of assets and liabilities.
Section 86.248 - Assets of fund retained for benefit of members.
Section 86.270 - Investigation and examination of applicants for disability benefits.
Section 86.277 - Disability allowance ceases on return to service — status as member.
Section 86.280 - Death benefit — dependents' allowances.
Section 86.287 - Accidental death benefit — dependents' allowances.
Section 86.288 - Contributions paid to surviving spouses, when.
Section 86.290 - Accumulated contributions refunded, when.
Section 86.292 - Accumulated contributions to remain system assets, when.
Section 86.293 - Disposition of difference between benefits paid and accumulated contributions.
Section 86.294 - Contributions to be accepted after January 1, 2002, limitations.
Section 86.295 - Death while performing qualified military service, benefit distribution, to whom.
Section 86.296 - Trustee to trustee transfers to be accepted after January 1, 2002.
Section 86.297 - Workers' compensation or other benefits offset against allowances.
Section 86.300 - Trustees to manage funds.
Section 86.303 - Interest on members' accounts.
Section 86.307 - Treasurer, custodian of assets — payments from, made how.
Section 86.310 - Ten percent may be kept in cash — maximum per depository.
Section 86.313 - Trustees and employees not to have direct interest in investments.
Section 86.320 - Contributions, rate of — deduction from compensation.
Section 86.330 - Normal rate of contribution, how determined.
Section 86.333 - Accrued liability contribution rate defined — calculated, when.
Section 86.337 - Amount payable to general reserve fund — city's contribution.
Section 86.340 - Accrued liability contribution discontinued, when.
Section 86.343 - Annual expenses — city, board each provide one-half — board, duties.
Section 86.350 - City obligated to pay cost of benefits and one-half of expenses.
Section 86.354 - Benefit vested and nonforfeitable, when — forfeitures, use of.
Section 86.357 - Fraud in obtaining benefits, a misdemeanor — adjustment of errors.
Section 86.359 - Retroactive payments to be lump sum with interest, rate.
Section 86.364 - Certain sections to terminate, when.
Section 86.500 - Police may form relief associations.
Section 86.503 - Fund, how created.
Section 86.511 - Pensions to be paid monthly.
Section 86.513 - First class cities may provide pension fund for police department.
Section 86.517 - Board of trustees of policemen's pension fund.
Section 86.520 - Board to have exclusive control and management of funds.
Section 86.523 - Refund of contributions, when — exceptions.
Section 86.527 - Board's decision on applications for relief or pension to be final.
Section 86.530 - Rewards, fees, gifts, shall be paid into pension fund.
Section 86.533 - Trustees may invest funds in certain bonds.
Section 86.537 - Trustees shall pay disabled members from pension fund, when.
Section 86.543 - Pension shall be paid after twenty years of service in certain cases.
Section 86.547 - Widow eligible for payments, when.
Section 86.549 - Special consultants, eligibility, compensation for.
Section 86.550 - Persons ineligible for membership.
Section 86.553 - Payments prorated if money insufficient for full payment.
Section 86.557 - Funeral expenses, when, amount.
Section 86.560 - Payments from pension fund by warrants only.
Section 86.563 - Payments from fund not to be diverted.
Section 86.567 - Pensioners may be recalled to duty in an emergency.
Section 86.570 - Pension may be terminated, when.
Section 86.573 - Books and accounts subject to inspection.
Section 86.577 - Annual report of pension fund.
Section 86.584 - Contributing members of retirement system to be represented on board of trustees.
Section 86.590 - Board of trustees authorized to invest funds, how.
Section 86.810 - Hancock provision to void sections.
Section 86.920 - Retirement board established, responsibility for operation of retirement system.
Section 86.930 - Membership of the board — election procedures — vacancies — oath.
Section 86.940 - Voting rights of board members.
Section 86.950 - Board to establish policies — officers and employees.
Section 86.951 - Board deemed a state agency — rulemaking authority.
Section 86.970 - Compensation of board members.
Section 86.980 - Board members in active police service, leave to attend educational seminars.
Section 86.990 - Board to certify amount to be paid by city, when.
Section 86.1010 - Members' retirement contributions, amount, how determined.
Section 86.1020 - Board to act as trustee of certain funds — powers of the board.
Section 86.1050 - Criminal liability not limited by retirement system laws — correction of errors.
Section 86.1060 - Board may sue and be sued — service of process, procedure.
Section 86.1070 - Findings of the board — review.
Section 86.1100 - Creditable service, board to fix and determine by rule.
Section 86.1110 - Military leave of absence, effect of — service credit for military service, when.
Section 86.1130 - Membership, terminated when.
Section 86.1150 - Retirement age — base pension amount.
Section 86.1151 - Tier II members, retire when — benefits, how computed.
Section 86.1160 - Termination of membership prior to death or retirement, effect of.
Section 86.1210 - Partial lump sum option plan distribution authorized.
Section 86.1220 - Cost-of-living adjustments in addition to base pension.
Section 86.1250 - Pensions of children of deceased members.
Section 86.1260 - Pensions of spouse and children of member who died in performance of duty.
Section 86.1280 - Early retirement incentives, effect of.
Section 86.1310 - Definitions.
Section 86.1350 - Voting by board, votes necessary to pass a motion.
Section 86.1390 - Contributions to retirement system by cities, amount.
Section 86.1410 - Board to be trustee of funds — powers and duties.
Section 86.1450 - Board may sue and be sued — service of process, procedure.
Section 86.1460 - Findings of board final and conclusive — judicial review.
Section 86.1470 - Board may purchase liability insurance — indemnification, when.
Section 86.1480 - Who shall be members.
Section 86.1490 - Creditable service, determination of — inclusions and exclusions.
Section 86.1510 - Members entitled to prior creditable service, when.
Section 86.1520 - Duration of membership.
Section 86.1530 - Normal retirement dates.
Section 86.1570 - Offset to workers' compensation payments — member's percentage defined.
Section 86.1590 - Cost-of-living adjustments — base pension defined.
Section 86.1620 - Funeral benefits, amount.
Section 86.1640 - Incentives for early retirement, board to administer and pay.