tag:blogger.com,1999:blog-1797875972831999598.post7430747839504575651..comments2023-11-22T04:27:07.521-06:00Comments on glen brown: Important and Interesting Events of the Teachers' Retirement System of Illinois Since 1915gbrownhttp://www.blogger.com/profile/13435049339082622611noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-1797875972831999598.post-10873812011137026632018-12-14T18:52:35.010-06:002018-12-14T18:52:35.010-06:00COLA:
The first automatic annual increase for TRS...COLA:<br /><br />The first automatic annual increase for TRS was enacted in 1969 and set at 1.5 percent, with each increase always calculated from the member’s original pension. Inflation in the United States at the end of 1969 was 6.18 percent.<br /><br />The AAI was increased in 1972 to 2 percent, when inflation was 3.65 percent. During the next seven years, inflation averaged 7.56 percent, with a high of 11.8 percent at the end of 1974.<br /><br />Inflation increased from 6.84 percent to 9.28 percent during 1978, and in that year the TRS AAI was increased to 3 percent – but still calculated each year from the member’s initial pension amount.<br /><br />The TRS AAI remained unchanged until 1990, when the formula was altered in state law to require subsequent increases to be compounded – calculated from the member’s current pension amount instead of the original amount. Inflation at the beginning of 1990 was 5.4 percent (via Fred Klonsky, via TRS).gbrownhttps://www.blogger.com/profile/13435049339082622611noreply@blogger.com