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(A) Cost of living benefit. On each May 1, subsequent to the date retirement benefits become payable to any pensioner or beneficiary, an adjustment shall be made in the yearly amount of the benefit payable to the retired member, as described in division (B) of this section.
(B) Determination of cost of living adjustment.
(1) For the purposes of determining the cost of living benefit, the following terms are defined:
(a) "ANNUITANT." Each pensioner, contingent annuitant or beneficiary who is receiving retirement benefits under this plan.
(b) "BASE INDEX."
1. Shall mean the Consumer Price Index for the month of January in the calendar year in which the pensioner or beneficiary's benefit first became payable.
2. If the Bureau of Labor Statistics subsequently adjusts the basis upon which the Consumer Price Index is determined, then the base index will be adjusted, as of the next January, by multiplying the base index by the ratio of that Consumer Price Index for said January on the new basis bears to the Consumer Price Index for the said January on the prior January.
(c) "BASE PENSION." The monthly pension benefit which first became payable to the pensioner or Beneficiary, whichever is applicable.
(d) "CONSUMER PRICE INDEX." The Consumer Price Index (U.S. All Items Index) published by the U.S. Department of Labor, Bureau of Labor Statistics.
(2) On each May 1, the cost of living benefit shall be determined. The adjustment with respect to each pensioner or beneficiary shall be equal to the excess of (a) over (b) below, if any, where:
(a) Is equal to the amount obtained by dividing the Consumer Price Index, as of the immediately preceding January, by the pensioner's base index. This quotient shall be multiplied by the pensioner's base pension. In no event may the amount determined in this division be greater than 3% of the last amount determined in accordance with this division (B)(2)(a); and
(b) Is equal to the annuitant's base pension.
(3) Such cost of living benefit will be applicable to such annuitant only if division (B)(2)(a) above exceeds division (B)(2)(b). Any excesses over 3% described in division (B)(2)(a) will be carried over to succeeding years, to be utilized in the event that the maximum rate is not achieved in succeeding years.
(4) On the May 1 on which a cost of living benefit is first applicable to an annuitant and on the first day of each month thereafter on which such individual continues to receive retirement benefits under this plan, he/she will be eligible for a cost of living benefit in an amount equal to one-twelfth (1/12) of the yearly cost of living benefit most recently determined for him, if applicable, in accordance with this division (B).
(C) Adjustment for former retired members. A member who retired prior to July 1, 1986 shall be entitled to an increase in his/her retirement benefit as effective July 1, 1986, of 1% of his/her retirement benefit for each full year from his/her annuity starting date to the effective date of this provision.
(Ord. 435, passed 3-12-01; Am. Ord. 666, passed 12-7-15)