§ 5-7-102. Employees' Retirement Plan; Retirement Plan for Appointed and Elected Officials.

   (a)   Benefits generally. This section applies to the benefits of:

      (1)   participants who retire before February 1, 1997 under the Employees' Retirement Plan and the Retirement Plan for Appointed and Elected Officials; and

      (2)   participants who retire on or after February 1, 1997 under the Employees' Retirement Plan or the Retirement Plan for Appointed and Elected Officials, to the extent that the benefit is attributable to credited service and final average basic pay calculated as of February 1, 1997.

   (b)   Cost-of-living adjustment. A cost-of-living adjustment shall be calculated in accordance with this section commencing each July 1 following:

      (1)   the retirement date of a participant; or

      (2)   the death of a participant whose spouse or minor children are eligible for monthly death benefit payments as provided in § 5-3-308 or § 5-3-309, or as provided in the Retirement Plan for Appointed and Elected Officials, as appropriate.

   (c)   Monthly amount of benefits. Except as provided in subsection (d), the monthly amount of benefit payable is subject to cost-of-living adjustments based on the "Consumer Price Index (Urban Wage Earners and Clerical Workers)", published monthly by the Bureau of Labor Statistics. The adjustment for each plan year is determined by dividing the "Consumer Price Index" for the fourth month preceding July 1 by the "Consumer Price Index" for the fourth month prior to the immediately preceding July 1 or if later, the fourth month preceding the participant's retirement date. The monthly amount of benefit payable during the current plan year equals the sum of:

      (1)   the monthly amount of a participant's benefit as of the participant's retirement date;

      (2)   the benefit described in subsection (c)(1) adjusted by the percentage increase in the "Consumer Price Index" to the nearest 0.1%; and

      (3)   the previous cost-of-living or other adjustments applicable to the participant, as determined by the Personnel Officer.

   (d)   Index used effective July 1, 2002. Effective with the July 1, 2002 cost-of-living adjustment, the index referred to in subsection (c) shall be replaced with the "Consumer Price Index (All Urban Consumers - U.S. City Average-All Items)". This index shall be used for all participants, and prior increases may not be recalculated.

   (e)   Percentage increase. An annual percentage increase of a monthly amount of benefit may not exceed 3%.

   (f)   Amount not reduced. The monthly amount of benefit may not be reduced by a negative cost-of- living adjustment to an amount below the monthly amount of base benefit payable to the participant or the participant's duly named joint annuitant or beneficiary.

(1985 Code, Art. 7, § 7-102) (Bill No. 90-01)