(a) Benefits generally. This section applies to the benefits of:
(1) participants who, before February 1, 1997, retire under the Fire Service Retirement Plan or the Police Service Retirement Plan; and
(2) participants who retire on or after February 1, 1997 under the Fire Service Retirement Plan or the Police Service Retirement Plan, to the extent that the benefit is attributable to credited service and final average basic pay calculated as of February 1, 1997.
(b) Monthly benefits increased. Except as otherwise provided in this section, whenever the current average of the 12 most recently published monthly indices of the "Consumer Price Index (All Urban Consumers - U.S. City Average - All Items)", increases as of any July 1 after the retirement of a participant, including retirement due to total and permanent disability, over the corresponding average index as of the participant's date of retirement, the amount of the participant's monthly benefit as of the date of retirement payable after the applicable July 1 shall be increased by the same percentage by which the current average index exceeds the corresponding average index as of the participant's date of retirement.
(c) Monthly benefits reduced. If the current average Consumer Price Index on any July 1 is less than the corresponding average index forming the basis for the participant's monthly benefit immediately prior to July 1, the amount of the participant's monthly benefit as of the participant's date of retirement payable after the applicable July 1 shall be reduced so that the reduced amount shall represent the same percentage of the participant's benefit at retirement as the percentage that the current average index represents of the corresponding average index as of the participant's date of retirement.
(d) Amount not to be increased or decreased by more than 4%. The total amount of the participant's monthly benefit may not be increased or decreased by more than 4%, rounded to the nearest 0.1%, as of any July 1, nor may the benefit be reduced below the initial amount payable on the participant's retirement.
(e) Change of index. The County may change the index to be used in adjusting the benefit payments and determine the method of conveying previous adjustments to the new index.
(f) Consumer price index. The monthly benefit payable to an eligible participant's spouse, minor children, or beneficiary, shall be increased or decreased to reflect changes in the consumer price index in a manner consistent with this section. For a payee enumerated in this subsection who was receiving a monthly benefit prior to November 1, 1973, the monthly benefit shall be increased as of the July 1 following November 1, 1973 by the percentage that the current average index exceeds the corresponding average index as of July 1, 1973.
(1985 Code, Art. 7, § 7-103) (Bill No. 90-01; Bill No. 66-05)