(1) Post-retirement adjustments for PERS, game wardens and sheriffs' retirement system retirees will be made in each year the amount in the reserve fund is adequate for this purpose as provided in 19-3-1110 (3) , 19-7-709 (3) and 19-8-809 (3) , MCA.

(2) In accordance with 19-3-1110 , 19-7-709 , and 19-8-809 , MCA, funding available for post-retirement adjustments is determined at the end of each fiscal year, by subtracting from the total investment income, the actuarial amount necessary to fund the retirement system and multiplying the remainder by the portion of the retirement fund balance representing retired members.

(a) "Total investment income" earned on a pension trust fund in a fiscal year is the net investment yield realized by the pension trust fund during that fiscal year. Unrealized gains or losses, such as unrealized appreciation or depreciation in market value, shall not be considered when calculating total investment income.

(b) The "actuarial amount required to fund the retirement system" is investment income, after payment of administrative and investment expenses, sufficient to attain the actuarially required rate of return for the year(s) since the last postretirement adjustment. The actuarially required rate is the rate recommended by the consulting actuary and adopted and published by the board pursuant to ARM 2.43.304.

(c) The "portion of the retirement fund balance representing retired members" is a percentage equal to the present value of accrued benefits for retirees divided by the present value of accrued benefits for all members.

(3) Eligibility for post-retirement adjustments will be determined as of June 30th of each year that investment earnings are available for that purpose.

(4) Adjustments to the benefits of eligible recipients, determined in (2) above, will be paid beginning in the succeeding January.

(5) If the eligible retiree or survivor has elected to receive an option 2, 3, or 4 retirement allowance, the post retirement adjustment must be adjusted using the most recent actuarial tables adopted by the board.