(A) Retirees who have been retired from the Police and Firefighters’ Pension Plan for a period of five or more years prior to or on October 1, 2000 shall be granted an increase in pension benefits, effective October 1, 2000, and each October 1 thereafter. Annual pension benefits shall be increased by a “fixed” (guaranteed) 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%. Notwithstanding the previous sentences, effective October 1, 2024, annual pension benefits for members who are active firefighters or participating in the Deferred Retirement Option Plan (DROP) on or after October 1, 2022 shall be increased by a “fixed” (guaranteed) percentage equal to 3%. 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 fifth anniversary of retirement after October 1, 2000 shall be granted an annual increase in pension benefits effective on the fifth retirement anniversary date, payable on the following October 1, and each October 1 thereafter, in the percentage amount paid the previous October 1 under subsection (A) above. Notwithstanding the previous sentence, a firefighter employee who participates in the DROP for five or more years shall be eligible for an annual increase in pension benefits on the October 1 following his or her separation from the city, and on each subsequent October 1 in accordance with this article. Notwithstanding the previous sentences, effective October 1, 2024, retirees shall be granted an annual increase in the pension benefits commencing after the first year of retirement, payable on the following October 1, and each October 1 thereafter, in the percentage amount paid the previous October 1 under subsection (A).
(C) 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.
(D) The annual actuarial valuation shall assume that the “fixed” 2% annual COLA 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. 2001-43, passed 3-13-01; Am. Ord. 2006-9, passed 12-13-05; Am. Ord. 2009-03, passed 10-14-08; Am. Ord. 2011-47, passed 6-14-11; Am. Ord. 2023-12, passed 11-8-22)