(a) On January 1 of each year, a cost-of-living adjustment will be made to the base pension payable to each retiree or beneficiary, if the person was entitled to a base pension on or before December 31 of the preceding year. If a base pension becomes payable during the 12 months preceding the cost-of-living adjustment, the adjustment will be prorated, with one-twelfth being paid for each whole or part month from the date the base pension became payable to the end of the year.
(1) A health benefit supplement under Section 40A-27 is not base pension and is not subject to any cost-of-living adjustment.
(2) The minimum amount payable as a disability retirement pension for a service disability under Section 40A-18(b)(2) or as death benefits for a service death under Section 40A-21(g)(2) will be considered the base pension for computing cost-of-living adjustments unless a greater base pension is payable under this chapter.
(b) The cost-of-living adjustment to the base pension will be made by using one of the following methods, whichever is the most beneficial to the retiree or beneficiary:
(1) the percentage of change in the price index for October of the current year over October of the previous year, up to:
(A) five percent for a Tier A retiree or beneficiary; or
(B) three percent for a Tier B retiree or beneficiary; or
(2) the percentage of the annual average change of the price index for the latest 12 months available, up to:
(A) five percent for a Tier A retiree or beneficiary; or
(B) three percent for a Tier B retiree or beneficiary.
(c) The cost-of-living adjustment may not reduce benefits of a retiree or beneficiary.
(d) In addition to the regular cost-of-living adjustment payable under Subsection (a) of this section, the board may from time to time grant an additional temporary or permanent adjustment if there exists investment income in excess of that needed to maintain the actuarial soundness of the fund. The adjustment is discretionary with the board in both its grant and application after the board has considered the funding of the increase and the relative needs of the retirees and beneficiaries. The adjustment may not increase or decrease the base pension of the retirees and beneficiaries. Any discretionary adjustment granted by the board under this subsection will not become effective unless approved by an ordinance or resolution of the city council. (Ord. Nos. 15414; 16886; 19470; 20960; 21582; 22345; 25695; 30162)