§ 1167 Pilot Pension Adjustment Rules

This law tells a board to check the pensions of retired or disabled pilots (and their spouses) every three years or sooner if the local cost‑of‑living index goes up more than 12%, and it lets the board raise those pensions but only up to half of the cost‑of‑living increase, with a smaller (pro‑rated) raise for people who haven’t been retired the full three years.

Key Takeaways

•The board reviews pilot pensions every 3 years or sooner if CPI jumps >12%.
•Any pension raise can’t be more than half of the CPI increase.
•Retirees who haven’t been retired the full three years get a proportionally smaller raise based on how many months they’ve been retired.

Example

Pilot Jane retired 18 months ago. The San Francisco Bay Area CPI has risen 10% since the last pension review.

The board can raise Jane’s monthly pension, but the raise can’t be more than half of the 10% CPI rise (so at most 5%). Because Jane has only been retired for half of the three‑year period, she gets half of that 5% increase, which is a 2.5% raise to her pension.

How to Calculate

Maximum pension increase = 0.5 × (Cumulative CPI increase)

Find the total percent increase in the Consumer Price Index (CPI) since the last review.
Multiply that CPI increase by 0.5 (or 50%) to get the biggest raise the board can give.
If the retiree has been retired for fewer than three years, calculate the pro‑rated portion: (Months retired ÷ 36) × Maximum pension increase.

Pilot Jane’s CPI increase = 10%; she has been retired 18 months.

Result: Jane’s pension goes up by 2.5%.

(a) The board shall review the benefits received by retired or disabled pilots and inland pilots and their surviving spouses every three years or when the cumulative percentage increase in the Consumer Price Index (San Francisco Bay Area) has exceeded 12 percent, whichever occurs first. (b) The board may increase the monthly pensions specified in Section 1163. Those increases shall take into consideration the maritime industry practice in the United States as brought to the attention of the board by the pilots, inland pilots, or the industry. The increase shall not exceed 50 percent of the cumulative increase in the Consumer Price Index (San Francisco Bay Area). Monthly pensions for retired pilots, inland pilots, or their surviving spouses who have been retired less than the full three-year interval between adjustments shall increase on a pro rata basis according to the number of months that those persons have been retired prior to that adjustment. (Amended by Stats. 1993, Ch. 1192, Sec. 5. Effective January 1, 1994.)

Key Takeaways

•The board reviews pilot pensions every 3 years or sooner if CPI jumps >12%.
•Any pension raise can’t be more than half of the CPI increase.
•Retirees who haven’t been retired the full three years get a proportionally smaller raise based on how many months they’ve been retired.

Example

Pilot Jane retired 18 months ago. The San Francisco Bay Area CPI has risen 10% since the last pension review.

How to Calculate

Maximum pension increase = 0.5 × (Cumulative CPI increase)

Find the total percent increase in the Consumer Price Index (CPI) since the last review.
Multiply that CPI increase by 0.5 (or 50%) to get the biggest raise the board can give.
If the retiree has been retired for fewer than three years, calculate the pro‑rated portion: (Months retired ÷ 36) × Maximum pension increase.

Pilot Jane’s CPI increase = 10%; she has been retired 18 months.

Result: Jane’s pension goes up by 2.5%.

Key Takeaways

Example

How to Calculate

Key Terms

References

§ 1167 Pilot Pension Adjustment Rules

Key Takeaways

Example

How to Calculate

Key Terms

References

Key Takeaways

Example

How to Calculate

Key Terms

Related Statutes

References

Key Takeaways

Example

How to Calculate

Key Terms

Related Statutes

References