A BILL TO BE ENTITLED
AN ACT to provide mandatory cost‑of‑living increases to retirees of the teachers' and state employees' retirement system equal to the cost‑of‑living pay increase given to state employees.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 135‑5 is amended by adding a new subsection to read:
"(ooo)	Effective July 1, 2006, and each July 1 thereafter, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before July 1 of the previous year shall be increased by the same percentage as the cost‑of‑living salary increase provided to State employees for the fiscal year commencing on July 1 of the current year. Furthermore, from and after July 1, 2006, and each July 1 thereafter, the retirement allowance to or on account of beneficiaries whose retirement commenced after July 1 of the previous year but before June 30 of the current year shall be increased by a prorated amount of the same percentage as the cost‑of‑living salary increase provided to State employees for the fiscal year commencing on July 1 of the current year, payable as determined by the Board of Trustees based upon the number of months that a retirement allowance was paid between July 1 of the previous year and June 30 of the current year."
SECTION 2.  This act becomes effective July 1, 2006.