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Was it constitutional for Proposition 124 to replace PSPRS' permanent benefit increases with a capped 2% COLA?

In this blog I and multiple commenters have broached the subject of the suspect constitutionality of PSPRS' replacement of the old perma...

Thursday, September 18, 2014

SEE CORRECTED POST on 9/22/2014 ***Latest update on PSPRS COLA's for the current fiscal year***

SEE CORRECTED POST ON 9/22/2014; THIS POST REMAINS UP ONLY FOR COMPARISON PURPOSES.

Following in boldface is the latest information taken from the PSPRS website on COLA's (aka permanent benefit increases) for the 2014-15 fiscal year:

INFORMATION REGARDING THE JULY 2014 PBI PAYMENT (PAYABLE IN SEPTEMBER 2014) FOR ELIGIBLE RETIREES 

The retroactive permanent benefit increase (PBI) will post to your account payable for Friday, September 19, 2014.  This payment is for two month timeframe of July and August 2014. The regularly scheduled benefit payment on September 30 will incorporate the new pension amount going forward from September 30, 2014 through June 30, 2015.  Please note that for the majority of our membership this two month payment may be very small in comparison, especially to the payment for the 3 year retroactive adjustment made in June. 
Below are the average payments for each system/plan:


PSPRS: $65.20 payment
CORP:
(Tier 1)		 1.59% increase
CORP:
(Tier 2) 		0.81% increase
EORP: 4.00%

Remember: This retroactive payment is separate from your regular September benefit payment which will occur on September 30.

Please create a Members Only account (Click Here) if you have not done so in order to view your own personal record.  

It appears that the monthly COLA for PSPRS retirees is a modest $32.60 per month for the 2014-15 fiscal year, and all eligible PSPRS retirees should see a permanent $32.60 increase to their monthly benefit starting with the next scheduled payment on September 30, 2014.  There is always a lag for COLA's while PSPRS calculates its final returns for the prior fiscal year that ends on June 30, and the $65.20 to be paid September 19th is a separate retroactive payment for the July and August benefit checks

This COLA amount represents a 1.09% raise for someone with a $3,000 monthly benefit, and a 0.81% raise for someone with a $4,000 monthly benefit.  According to InflationData.com, the inflation for the 12 month period ending August 2014, the latest listed, is 1.70%. 
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2 comments:

  1. AnonymousSeptember 19, 2014 at 7:17 AM

    I think the poster of this article has it wrong, it will be $65.20 each month for police and fire as stated in the bold print, not $32.60 as stated in the lighter print.

    ReplyDelete
  2. Drop ZoneSeptember 19, 2014 at 8:01 AM

    Thank you for your comment. Rereading PSPRS' post, it does raise some questions about how much the COLA will be. I calculated the $32.60 as being one-half of a $65.20 retroactive payment for two-months worth of COLA's not paid in July and August. As you point out, it could very well be that the $62.50 is the actual monthly COLA increase, meaning the retroactive payment should be $125.00 for July and August. I am not a PSPRS retiree so I will not be able to verify the exact COLA amount. If any retirees can verify the COLA amount as being different than $32.60 after the September 30 payment, please let me know and I will post a correction.

    ReplyDelete

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