Cost of living adjustment passes House

Posted by: Brandi Klingerman  | Tuesday, February 4, 2014

Cost of living adjustment passes House

STATEHOUSE – House Bill (HB) 1231 authored by State Representative Martin Carbaugh (R-Fort Wayne) and co-authored by Reps. Doug Gutwein (R- Francesville), Bob Cherry (R-Greenfield) and David Niezgodski (D-South Bend) passed out of the House Monday with unanimous vote and will now go to the Senate for further discussion.

HB 1231 provides a formula for cost of living adjustments (COLA) for certain members of the Public Employees’ Retirement Fund, Indiana State Teachers’ Retirement Fund, State Police Pre-1987 system and the State Police 1987 Benefit System.

“Our state pensioners haven’t received a cost of living increase since 2008,” said Rep. Carbaugh. “HB 1231 will give a permanent increase to folks such as our retired teachers. The pension funds are their money that they worked long and hard for and can support this needed increase.”

The COLA formula is based on several factors: an increase of $10 for each year of service (up to 30 years of service) plus a percentage increase on current annual benefits, based on the date of retirement (not to exceed $300). The percentage increase is 1.5 percent for those who retired prior to Jan. 1, 1983, 1 percent for those who retired between Jan. 1, 1983, and Dec. 31, 1994, and 0.5 percent for those who retired after Dec. 31, 1994. The maximum available increase under this formula is $600 in the form of a COLA.

For the State Police Pre-1987 Benefit System, increases are based on a 1 percent increase of actual benefits currently received. For the State Police 1987 Benefit System, increases are based on a 0.75 percent increase of actual benefits currently received.

-30-

State Rep. Martin Carbaugh serves as Vice Chairman of the Insurance Committee. He also serves on the Employment, Labor and Pensions Committee and the Veterans Affairs and Public Safety Committee. Rep. Carbaugh represents a portion of Allen County.