How does the proposed COLA change affect individuals who are receiving either a disability allowance or a disability retirement?
If a disability benefit begins on or before July 1, 2012, the 2% COLA will apply, even if the member moves to a service retirement benefit at a later date. If the disability benefit begins after July 1, 2012, the disability recipient will begin receiving a 2% COLA after receiving benefits for 60 months. The annual COLA will continue if the member moves to a service retirement provided there is no break in benefits between the termination of disability benefits and the beginning of service retirement benefits. If there is a break in benefits, the COLA rules based on the service retirement date will apply.
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