A. Subject to the limitations described in Subsection B, a member currently receiving a normal retirement benefit or an accrued normal retirement benefit shall receive an annual cost-of- living allowance. The Pension Committee shall determine the amount of the cost-of-living adjustment based on the percentage increase or decrease in the consumer price index for the immediately preceding calendar year and applied as the Acts of the Commonwealth proscribe.
B. Amount. A member’s disability retirement benefit shall be equal to 50% of the member’s salary at the time the disability was incurred, reduced by the amount of Social Security disability benefits received for the same injury.
(1) No cost-of-living allowance shall exceed the percentage increase in the consumer price index from the year in which the member terminated his employment with the township as a police officer.
(2) The maximum annual cost-of-living adjustment for any year shall be 3%.
(3) No cost-of-living allowance may increase a member’s normal retirement benefit or accrued normal retirement benefit to an amount that would exceed 30% of the final average salary used to compute the member’s benefit. [Amended 1-9-2001 by Ord. No. 1054]
(4) No cost-of-living allowance shall be granted if such cost-of-living allowance would impair the actuarial soundness of the pension fund.