Washington Code 41.40.640 – Post-retirement cost-of-living
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Beginning July 1, 1979, and every year thereafter, the department shall determine the following information for each retired member or beneficiary whose retirement allowance has been in effect for at least one year:
Terms Used In Washington Code 41.40.640
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Department: means the department of retirement systems created in chapter 41. See Washington Code 41.40.010
- Index: means , for any calendar year, that year's annual average consumer price index, Seattle, Washington area, for urban wage earners and clerical workers, all items, compiled by the bureau of labor statistics, United States department of labor. See Washington Code 41.40.010
- Member: means any employee included in the membership of the retirement system, as provided for in RCW 41. See Washington Code 41.40.010
- Retirement: means withdrawal from active service with a retirement allowance as provided by this chapter. See Washington Code 41.40.010
- Retirement allowance: means the sum of the annuity and the pension. See Washington Code 41.40.010
(1) The original dollar amount of the retirement allowance;
(2) The index for the calendar year prior to the effective date of the retirement allowance, to be known as “index A”;
(3) The index for the calendar year prior to the date of determination, to be known as “index B”; and
(4) The ratio obtained when index B is divided by index A.
The value of the ratio obtained shall be the annual adjustment to the original retirement allowance and shall be applied beginning with the July payment. In no event, however, shall the annual adjustment:
(a) Produce a retirement allowance which is lower than the original retirement allowance;
(b) Exceed three percent in the initial annual adjustment; or
(c) Differ from the previous year’s annual adjustment by more than three percent.
For the purposes of this section, “index” means, for any calendar year, that year’s average consumer price index—Seattle, Washington area for urban wage earners and clerical workers, all items, compiled by the bureau of labor statistics, United States department of labor.
NOTES:
Legislative direction and placement—Section headings—1977 ex.s. c 295: See notes following RCW 41.40.610.