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HomeMy WebLinkAboutResolutions - 1968.12.23 - 1903323 , 4979 - Mr. Levinson • A Proposal to Amend the Oakland County Employees Retirement System Resolution To Establish a Program for Post-Retirement Benefit Increases Draft 12-13-1968 Section 34.1. (a) For a monthly benefit becoming effective on or after January 1, 1969 and beginning with the May first which is at least 12 full months after the effective date of the benefit, the amount of the benefit shall be redeter- mined effective each May first and such redetermined amount shall be payable for the ensuing year. Subject to the maximum stated in the next sentence, such re- determined amount shall be the amount of the benefit otherwise payable multi- plied by the following percent: 100.0 percent, plus 1.5 percent for each full year (excluding any fraction of a year) in the period from the effective date of the benefit to the current May first. In no event shall such redetermined amount (i) be less than the amount of the benefit otherwise payable nor (ii) be more than the amount of the benefit otherwise payable multiplied by the follow- ing fraction: the numerator shall be the average of the Consumer Price Index for the 12 calendar months in the calendar year immediately preceding such May first (but in no event an amount less than the denominator below) and; the denominator shall be the average of the Consumer Price Index for the 12 calendar months in the calendar year immediately preceding the effective date of the benefit. "The amount of the benefit otherwise payable" means the monthly amount of benefit which would be payable disregarding these provisions redetermining benefit amounts after retirement. (b) As used herein "Consumer Price Index" means the Consumer Price Index for Urban Wage Earners and Clerical Workers, as determined by the United States Department of Labor and in effect January 1, 1968; provided, should such Consumer Price Index be restructured subsequent to 1968 in a manner materially changing its character, the Commission after receiving the advice of the Actuary shall change the application of the Consumer Price Index so that as far as is practicable the 1968 intent of the use of the Consumer Price Index shall be continued. (c) For a monthly benefit which became effective before January 1, 1969, beginning with the monthly benefit payment, if any, for the month of January 1969, the amount cf the monthly benefit shall be increased by 17. for each full year (excluding any fraction of a year) in the pehod from the effective date of the benefit to January 1, 1969, to a maximum increase of la. In addition, beginning May 1, 1969 the amount of the benefit shall be redetermined effective each May first and such redetermined amount shall be payable for the ensuing year. Subject to the maximum stated in the next sentence, such redetermined amount shall be the amount of the benefit otherwise payable multiplied by the following percent: 100.0 percent, plus 1.5 percent for each full year (excluding any fraction of a year) in the period from May 1, 1969 to the current May first. In no event shall such redetermined amount (i) be less than the amount of the benefit otherwise payable nor (ii) be more than the amount of the benefit other- wise payable multiplied by the following fraction: the numerator shall be the average of the Consumer Price Index for the 12 calendar months in the calendar _ year immediately preceding such May first '(but in no event an amount less than the denominator below) and; the denominator shall be the average of the Consumer Price Index for the 12 calendar months in the calendar year 1967. "The amount of . _ the benefit otherwise payable" means the monthly amount of benefit which would -2- be payable disregarding these provisions redetermining benefit amounts on and after May 1, 1969. (d) In no event shall the pension portion of annual benefits payable to a retirant, or payable to beneficiaries on behalf of a deceased member, exceed the greater of (i) $2,400 and (ii) 27 of the former member's final average com- pensation multiplied by his years of credited service not.to exceed 25 years; except, for an age and service retirant the $2,400 amount next above shall be $1,800. Moved by Levinson supported by Hursfall the resolution be adopted. Discussion followed. A sufficient majority having voted therefor, the resolution was adopted.