Sec. 1424. Cost of Living Adjustments to Pensions Formerly Excluded.

   (a)   Definitions. Wherever used in this section:

   (1)   “the pension” shall mean, unless Section 1422 shall be mentioned in conjunction therewith, only a pension which is not identified in Section 1422;

   (2)   “the July 1 following” shall mean only a July 1 subsequent to May 2, 1969;

   (3)   “Beneficiary” shall include its plural; and

   (4)   words with respect to any pension granted or to be granted pursuant to Section 1414 also shall mean and include the words, as used in Section 1422(b)(3), “whether by reason of the provisions thereof or of those of Section 1414(b) and (c), including, any additional pension amounts payable pursuant to Section 1414(a)(7).”

   (b)   Method. The percentage of increase or decrease in the cost of living thereafter shall be applied pursuant to Section 1422 and the terms and conditions contained in this section:

   (1)   Disability Pensions. To the pension of any Retired Member, ever granted pursuant to Section 1412, upon the July 1, following the date of his retirement or the effective date of this paragraph of this section, whichever shall be the later; or Section 1412, upon the July 1, following the date he shall have had 25 years of service, the date he would have had 25 years of service if he previously had not retired or the fifth anniversary of the effective date of the pension, whichever shall be the earliest;

   (2)   Survivor Pensions Based Upon Previously Active Members. To the pension of any Beneficiary ever granted on account of the death of an active System Member who died as a result of any injury received during the performance of his or her duties or from sickness caused by the discharge of such duties, upon the July 1, following the effective date of such Beneficiary’s pension; but if such pension became effective before July 1, 1989, it shall be retroactively adjusted as of July 1, 1989;

   (3)   Survivor Pensions Based Upon Previously Retired Members. To the pension of any Beneficiary,

   (A)   ever granted pursuant to Section 1414(a)(5) upon the death of a Retired Member previously retired pursuant to Section 1408 and which pension of such Beneficiary is identified in Section 1422(b)(3) or (4),

   (B)   ever granted pursuant to Section 1414(a)(3) upon the death of a Retired Member previously retired pursuant to Section 1412(a), or

   (C)   ever granted pursuant to Section 1414(a)(4) upon the death of the Retired Member, previously retired pursuant to Section 1412(b), upon the July 1 following the date such member shall have had 26 years of service, the date such member would have had 26 years of service if he previously had not retired and then had been alive, or the fifth anniversary of the effective date of the pension of such member, whichever shall be the earliest; and

   (4)   Survivor Pensions of Nonservice Connected Death of Members. To the pension of any Beneficiary,

   (A)   ever granted pursuant to Section 1414(a)(2) upon the death of a Department Member not eligible to retire pursuant to Section 1408, or

   (B)   ever granted pursuant to Section 1414(a)(6) upon the death of a Department Member eligible to retire pursuant to Section 1408 and which pension of such Beneficiary is identified in Section 1422(b)(3) or (4), upon the July 1 following the date such member shall have had 26 years of service, the date such member would have had 26 years of service if he then had been alive, or the fifth anniversary of the effective date of the pension of such Beneficiary, whichever shall be the earliest.

   (c)   Cost of Living Adjustments for Other Pensions. The following provisions, in respects other than those provided for in subsection (b) of this section, hereafter shall be controlling in the application to certain pensions of the percentage of increase or decrease in the cost of living.

   (1)   Whenever the amount of the pension:

   (A)   of any Retired Member shall be increased or decreased pursuant to Section 1412(a) or (c), or

   (B)   of any qualified surviving spouse shall be increased or decreased pursuant to any paragraph of Section 1414(a), the amount of any such increase shall not include the percentage of any increase in the cost of living which previously had been applied to the former amount of the pension; and the amount of any such decrease shall include the percentage of any increase in the cost of living which previously had been applied to it as a portion of the former amount of the pension.

   (2)   Whenever the pension of any Beneficiary:

   (A)   hereafter shall be granted pursuant to Section 1414(a)(5) upon the death of a Retired Member previously retired pursuant to Section 1408 and which pension of such Beneficiary is identified in Section 1422(b)(3) or (4),

   (B)   hereafter shall be granted pursuant to Section 1414(a)(3) upon the death of a Retired Member previously retired pursuant to Section 1412(a), or

   (C)   hereafter shall be granted pursuant to Section 1414(a)(4) upon the death of a Retired Member previously retired pursuant to Section 1412(b), the amount of the pension of any such Beneficiary,

   (i)   if the amount thereof which shall be payable to such Beneficiary were to be more than the amount of the pension which had been payable to such member, shall include the percentage of any increase in the cost of living which had been applied to the pension of such member, or

   (ii)   if the amount thereof which shall be payable to such Beneficiary were to be less than the amount of the pension which had been payable to such member, shall include that portion of the percentage of any increase in the cost of living which had been applied to the pension of such member which shall be in the same ratio as the amount of the pension which shall be payable to such Beneficiary shall bear to the amount of the pension which had been payable to such member, and the percentage of any increase or decrease in the cost of living in excess of 2% per year which had been carried over for such member as of the date of his death shall be carried over for such Beneficiary if (i) hereof were to be applicable or in the same ratio therein provided in (ii) hereof were to be applicable.

   (3)   Whenever the pension of any qualified surviving spouse hereafter shall be terminated pursuant to any provisions of Section 1414(a) and the pension thereafter shall become payable on behalf of any minor or dependent child or children of the deceased member, the amount of pension on behalf of such child or children shall include that portion of the percentage of increase in the cost of living which had been applied to the pension of such qualified surviving spouse which shall be in the same ratio as the amount of the pension which shall be payable on behalf of such child or children shall bear to the amount of the pension which had been payable to such qualified surviving spouse, and the percentage of any increase or decrease in the cost of living in excess of 2% per year which had been carried over for such qualified surviving spouse as of the date of the termination of his or her pension shall be carried over on behalf of such child or children in the same ratio hereinabove provided.

   (d)   Limitation of Reductions. The amount of the pension never shall be reduced, by reason of the application thereto of the provisions of Section 1422 or this section, to an amount less than the amount thereof payable pursuant to provisions of this Tier 2 other than those of Section 1422 and this section. Section 1422 hereafter shall be construed and applied in accordance with this section as to each pension mentioned in this section.