(A) Retirees who have been retired from the General Employees Pension Plan for a period of at least one year prior to or on October 1, 2000, shall be granted an increase in pension benefits by a "fixed" (guaranteed) percentage equal to 2% effective October 1, 2000, and each October 1 thereafter. Effective October 1, 2021, annual pension benefits shall be increased by a “fixed” (guaranteed) percentage equal to 3% for active Tier I members, current DROP members and Tier II members who pay the additional 3% member contribution (total 10% member contribution) and retire on or after October 1, 2021. In addition to the “fixed” increase, pension benefits shall be increased by a “variable” percentage, in an amount certified by the pension plan actuary as supportable and funded solely by the pension plan assets, but not more than 1%. The “variable” component of the cost-of-living adjustment may be granted only when the plan is sufficiently funded and only if all other provisions of this section are satisfied. The sum of the “fixed” and “variable” portions of the adjustment shall not exceed 4% per year nor be less than 3%.
(B) Retirees who reach the first anniversary of retirement after October 1, 2000 shall be granted an annual increase in pension benefits effective on the first retirement anniversary date, payable on the following October 1, and on each October 1 thereafter, in the percentage amount paid the previous October 1 under subsection (A) above.
(C) (1) Effective June 8, 2011, for members who were hired on or after June 8, 2011 and before December 8, 2020, retirees who receive normal retirement benefits shall be granted an increase in pension benefits effective on the fifth retirement anniversary date, payable on the following October 1, and each October 1 thereafter, as follows, except as otherwise provided in subsection (D) below:
(a) Eligible retirees under the age of 55 on October 1 of any given year shall not be entitled to any annual pension increase.
(b) Eligible retirees between the ages of 55 and 64 on October 1 of any given year shall be entitled to a 1% increase in pension benefits.
(c) Eligible retirees age 65 and older on October 1 of any given year shall be entitled to a 2% increase in pension benefits.
(2) In addition to the adjustments provided for in subparagraphs (b) and (c) above, pension benefits for eligible retirees shall be increased by a “variable” percentage in an amount certified by the pension plan actuary as supportable and funded solely by the pension plan assets but not more than one percent (1%). The “variable” component of the cost-of-living adjustment may be granted only when the plan is sufficiently funded and only if all other provisions of this section are satisfied. The sum of the pension adjustments provided for in subparagraphs (b) and (c) and the “variable” adjustment in this paragraph shall not exceed 3%.
(D) For members hired on or after June 8, 2011 and before December 8, 2020 who make contributions in accordance with § 34.025(D) and (E), retirees shall be granted an annual increase in pension benefits based on service before December 8, 2020, effective on the first retirement anniversary date, payable on the following October 1, and on each October 1 thereafter, in a fixed percentage equal to 2%. In addition to the “fixed” increase, pension benefits shall be increased by a “variable” percentage, in an amount certified by the pension plan actuary as supportable and funded solely by the pension plan assets, but not more than 1%. The “variable” component of the cost-of-living adjustment may be granted only when the plan is sufficiently funded and only if all other provisions of this section are satisfied. The sum of the “fixed” and “variable” portions of the adjustment shall not exceed 3% per year nor be less than 2%.
(E) For members hired on or after June 8, 2011 and before December 8, 2020, and members hired on or after December 8, 2020, retirees shall be granted an annual increase in pension benefits based on service on and after December 8, 2020, effective on the first retirement anniversary date, payable on the following October 1, and on each October 1 thereafter, in a fixed percentage equal to 2%. In addition to the “fixed” increase, pension benefits shall be increased by a “variable” percentage, in an amount certified by the pension plan actuary as supportable and funded solely by the pension plan assets, but not more than 1%. The “variable” component of the cost-of-living adjustment may be granted only when the plan is sufficiently funded and only if all other provisions of this section are satisfied. The sum of the “fixed” and “variable” portions of the adjustment shall not exceed 3% per year nor be less than 2%.
(F) In the event the pension plan is not sufficiently funded so as to provide a full 1% “variable” COLA in any year, a retroactive “variable” COLA, retroactive to the first year in which the full 1% “variable” COLA was not paid, shall be provided in subsequent years in which the plan is sufficiently funded, in order to provide an average compounded “variable” COLA of 1% per year, to the extent such amount is certified by the pension fund actuary to be supportable solely by the assets of the plan. The purpose of the retroactive additional COLA is to make retirees whole for any years in which the full 1% “variable” COLA could not be granted because the pension plan was not sufficiently funded.
(G) The annual actuarial valuation shall assume that the fixed 2% annual COLA adjustments provided in subsections (A) and (B) above and the fixed annual COLA adjustments provided in subsection (C)(1)(b) and (c) above will be repeated on an annual basis for future years. The “variable” COLA will not be assumed to be granted every year for future years because it is granted only in those years when the plan is sufficiently funded.
(Ord. 2001-50, passed 3-27-01; Am. Ord. 2011-53, passed 6-14-11; Am. Ord. 2021-31, passed 12-8-20; Am. Ord. 2022-09, passed 11-9-21)