(a) Formula. The amount of adjustment, if any, of periodic benefit payments that may be payable under a pension plan to eligible persons as a cost-of-living adjustment as of each July 1 under this subtitle shall be determined as of the preceding January 1 in accordance with the following formula:
(1) determine the amount of the periodic benefit payment as of the January 1 immediately preceding the effective date of the increase;
(2) determine the percentage, not to exceed 2.5%, equal to 60% of the percentage change in the CPI from March of the preceding year to March of the year in which the change is effective; and
(3) determine the amount of the cost-of-living adjustment by multiplying the amount determined under subsection (a)(1) by the percentage determined under subsection (a)(2), rounded to the nearest 0.1%.
(b) Reduction of payments. Notwithstanding any other provision of this section, in no case shall the cost-of-living adjustment reduce the periodic benefit payment to an amount that is less than the initial periodic benefit payment upon the commencement of the recipient's benefit payment.
(1985 Code, Art. 7, § 7-204) (Bill No. 90-01; Bill No. 66-05)