COLAs in 4 Easy Steps:

***Use the following formula for a retroactive check beginning with August:Example: Member passes before July COLA has been calculated in RIMS, and now the

beneficiary is due retroactive payments back through 07/01. The retro checks must be split (in calculation only) so that July’s payment does not include the COLA increase as the COLA would be effective 07/01 but not reflected until the August payment.

1. Take the House Bill (HB) dollar amount from RBIN and multiply by 1.02 for the new HB dollar amount:

HB (old amount): 134.82 (found on RBIN print screen) x 1.02 (2% COLA) 137.52

In an option 2 or 2A benefit, the new HB amount is $137.52.

***If the option chosen is a 3 or 3A, be sure to divide this number by 2.New HB amount for option 3:

137.52/2 = 68.76

In an option 3 or 3A benefit, the new HB amount is $68.76.

2. Subtract the original HB amount (from RBIN) from the current service amount (from RP51) to get the new current service:

695.13 (found on RP51 print screen) – 134.82 (original HB amount found on RBIN print screen) = $560.31.

The new current service is $560.31.

3. Take all the values of the new current service (CS), the tax remedy (TR), the regular annuity (RA), and the CPI from RP51 print screen and multiply each value by 1.02 (the 2% COLA increase):

CS: $560.31 x 1.02 = $571.52TR: $134.82 x 1.02 = $137.52RA: $308.55 x 1.02 = $314.72CPI: $494.36 x 1.02 = $504.25

*** If the option chosen is a 3 or 3A, be sure to divide these new values for CS, TR, RA, and CPI and divide by 2:

CS: $571.52/2 = $285.76TR: $137.52/2 = $68.76RA: $314.72/2 = $157.36CPI: $504.25/2 = $252.13

***These are the values that will be plugged into the Retro Calc Worksheet.

4. Add all the new values (if divided for O3 or O3A, or not) to get the new benefit amount:$571.52 + $137.52 + $314.72 + $504.25 = $1,528.01

In an option 2 or 2A benefit, the new benefit amount is $1,528.01.

$285.76 + $68.76 + $157.36 + $252.13 = $764.01

To calculate a July check, use the following formula:

1. Subtract the original HB amount (from RBIN) from the current service amount (from RP51) to get the new current service:

$695.13 – $134.82 = $560.31 (this is the current service prior to CPI)

In an option 2 or 2A benefit, the new current service is $560.31.

***If the option chosen is a 3 or 3A, be sure to divide this number by 2.New current service amount for option 3:

$560.31/2 = $280.16

In an option 3 or 3A benefit, the new current service amount is $280.16.

***2. If the option chosen is a 3 or 3A, take the original HB amount from RBIN and divide it by 2:

New HB amount for option 3:$134.82/2 = $67.41

In an option 3 or 3A benefit, the new HB amount is $67.41.

3. Add the current service amount (if divided for O3 or O3A, or not) and the HB amount (if divided for O3 or O3A, or not):

$560.31 + $134.82 = $695.13

In an option 2 or 2A benefit, the new current service amount is $695.13.

For option 3 or option 3A:$280.16 + $67.41 = $347.57.

In an option 3 or 3A benefit, the new current service amount is $347.57.

4. Take all the values of the new current service (CS), the regular annuity (RA), and the CPI from RP51 print screen and add them together:

$695.13 + $308.55 + $494.36 = $1498.04.

In an option 2 or 2A benefit, the new benefit amount, for July only, is $1,498.04.

***If the option chosen is a 3 or 3A, be sure to divide each value by 2.For option 3 or option 3A:

RA: $308.55/2 = $154.28CPI: $494.36/2 = $247.18

$749.03 + $154.28 + $247.18 = $749.03.

In an option 3 or 3A benefit, the new benefit amount, for July only, is $749.03.