tag:blogger.com,1999:blog-7609353726565000072.post701242016996140786..comments2023-06-14T02:29:40.319-07:00Comments on PSPRS Pension Watch: PSPRS members: Yes, Virginia, your pension can be cutDrop Zonehttp://www.blogger.com/profile/07195030344305212432noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7609353726565000072.post-59469505395220356372013-12-05T10:23:05.487-07:002013-12-05T10:23:05.487-07:00Thank you for your comment. CORP, like PSPRS and ...Thank you for your comment. CORP, like PSPRS and EORP, was subject to the reforms put in place by SB 1609. The permanent benefit increase (aka COLA) is now subject to both a minimum funding ratio AND minimum rate of return for the past fiscal year.<br /><br />CORP, at 66.9% funded, is better funded than either PSPRS or EORP and meets the minimum funding ratio requirement (> 60%). The combined fund also earned 10.58% last fiscal year, which is just slightly over the 10.50% funding ratio threshold.<br /><br />However, as I read the regulations, only the portion over the 10.50% is eligible to be paid out as a COLA. This is .08% of excess earnings of only CORP's share of the investment pool. I do not know how this would translate into total dollar amounts or amounts per retiree.<br /><br />Please keep in mind that there is no longer a fund that holds excess investment returns and builds over time. This means COLA's will not be paid in any year the fund does not earn at least 10.50%.<br /><br />This could all change overnight, of course, depending on what the Arizona Supreme Court rules on current challenges to SB 1609. Those cases are still pending.Drop Zonehttps://www.blogger.com/profile/07195030344305212432noreply@blogger.comtag:blogger.com,1999:blog-7609353726565000072.post-10374101537388970762013-12-03T14:17:22.016-07:002013-12-03T14:17:22.016-07:00CORP retirees haven't gotten a COLA increase i...CORP retirees haven't gotten a COLA increase in 2 or 3 years. With the stock market up as it is the investments must be making money, there must be funds going into the pension trust fund.Anonymousnoreply@blogger.com