§ 154-141. Cost of living increase in retirement payments.

(a)

Eligibility and commencement. Each participant or beneficiary who is receiving benefits under the plan shall be eligible for a cost of living increase in his monthly retirement payments as of each annual adjustment date.

(b)

Amount. As of each annual adjustment date, the board of trustees shall determine the current average cost-of-living index, and the benefits being paid under the plan shall be adjusted as of the annual adjustment date as follows:

(1)

If the current average cost-of-living index is more than 100 percent of the adjusted pensioner index, the benefit shall be increased by a percentage equal to the difference between 100 percent and the percentage representing the current average cost-of-living index divided by the applicable adjusted pensioner index.

(2)

If the current average cost-of-living index is less than 100 percent of the adjusted pensioner index, the basic benefit shall be reduced by a percentage equal to the difference between 100 percent and the percentage representing the current average cost-of-living index divided by the applicable adjusted pensioner index. Notwithstanding the foregoing, no increase or decrease in the amount of the monthly retirement benefit due to changes in the current average cost-of-living index effective at any annual adjustment date shall be in excess of three percent of the amount of the monthly retirement benefit payable immediately before such date. The provisions of this subsection shall not be applied so as to reduce the monthly benefit of a participant or beneficiary below the participant's accrued benefit at retirement or, in the case of a beneficiary, 75 percent of such amount.

(91-RC-669, § 4.10, 12-18-91)