Section 27 State Retiree COLA Fund and State Retiree Benefits Adjustment 6

Said section 22 of said chapter 32, as so appearing, is hereby further amended by inserting after subdivision (6A) the following subdivision:-
(6B)(a) There shall be: (i) a Cost of Living Reserve Fund for the state employees' and teachers' retirement system; and (ii) a Cost of Living Reserve Fund for each retirement system other than the state employees' and teachers' retirement systems that accepts this subdivision pursuant to paragraph (b). The Cost of Living Reserve Funds shall be credited all amounts set aside pursuant to clause (vi) of paragraph (a) of subdivision (6) for the purpose of establishing a reserve to meet future cost of living liabilities as provided in paragraph (h) of section 102 or paragraphs (k), (l) or (m) of section 103, and increases to the maximum base amount as provided in paragraph (i) of said section 102. Assets held in the Cost of Living Reserve Funds shall be invested with all other assets of the system, but shall not be included in a system's assets for purposes of actuarial valuations until transferred to provide for increased liabilities as contained in said paragraph (h) and (i) of said section 102 and said paragraphs (k), (l) and (m) of said section 103.
(b) This subdivision shall take effect for systems, other than the state employees' and teachers' retirement systems, upon its acceptance by a majority vote of the board of such system, subject to approval of the legislative body. For the purposes of this subdivision, "legislative body" shall mean: (i) in the case of a city, the city council in accordance with its charter; (ii) in the case of a town, the town meeting; (iii) in the case of a district, the district members; and (iv) in the case of an authority, the governing body. In the case of a county or regional retirement system, this subdivision shall take effect upon its acceptance by the county or regional retirement board advisory council at a meeting called for that purpose by the county or regional retirement board. Acceptance of this subdivision shall be deemed to have occurred upon the filing of the certification of such vote with the commission. A decision to accept this subdivision shall not be revoked.
(c) This subdivision shall take effect automatically for the state employees' and teachers' retirement systems.
(d) Until the transfer required by this paragraph has occurred, the actuary shall annually determine and certify the actuarial present value of the total increase in the liabilities of a system attributable to the additional benefits provided in paragraph (h) of section 102 or paragraphs (k), (l) or (m) of section 103. Upon certification that the balance of a system's Cost of Living Reserve Fund is not less than the amount so determined: (i) an amount equal to the amount certified for the state employees' and teachers' retirement systems shall be transferred from the Cost of Living Reserve Fund to the applicable Pension Reserve Fund established under subdivision (6A); and (ii) the entire balance of the Cost of Living Reserve Fund of any system other than the state employees' and teachers' retirement systems shall be transferred to the Pension Reserve Fund of that system. The transfer required by this paragraph shall occur only once with respect to each Cost of Living Reserve Fund.