§ 154-341. Cost of living adjustment.

Any person receiving a pension payment under the provisions of this division or his beneficiaries shall be entitled to cost-of-living adjustments as hereinafter set forth. As used herein, the following terms shall have the following meanings:

(1)

Current average cost-of-living index means the average of the monthly Consumer Price Index for the 12-month period from November 1 through October 31, prior to the annual adjustment date, as determined by the Bureau of Labor Statistics of the United States Department of Labor for all items and major groups, United States city average.

(2)

Pensioner base index means the average of the Consumer Price Index for the 12-month period ending two months prior to the date of retirement for any participant who retires under the provisions of this division. In the event the base year used in computing the monthly Consumer Price Index should be changed by the Bureau of Labor Statistics, the board of trustees shall, with the advice of an independent actuary, adjust the pensioner base index of each retired pensioner and of each pensioner or beneficiary, with benefit payments commencing during the first year in which such change was made, so as to effect the original intent of this section in an equitable manner.

(3)

Adjusted pensioner index means the pensioner base index adjusted, on a cumulative basis, for all percentage adjustments made in benefits prior to the current annual adjustment date. The adjusted pensioner index and the pensioner base index shall be applicable to any beneficiary becoming entitled to benefits under this resolution in the same manner as they would have been applicable to the pensioner had such pensioner continued in life.

(4)

Annual adjustment date means January 1 of each year. The board of trustees shall ascertain the current average cost-of-living index as of January 1 each year, and the benefits being paid under this resolution shall be adjusted as of the annual adjustment date as follows:

a.

If the current average cost-of-living index is less than 100 percent of the adjusted pensioner index, such person's 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 his adjusted pensioner index.

b.

If the current average cost-of-living index is less than 100 percent of the adjusted pensioner index, such person's 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 his adjusted pensioner index.

(5)

Current average cost-of-living index. Notwithstanding the foregoing provisions of this subsection, 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 prior to such date. Neither shall the provisions of this subsection be applied so as to reduce the amount of the benefits of a pensioner or beneficiary of an amount less than that to which such pensioner or beneficiary would be entitled to receive under the other provisions of this division.

(Code 1983, § 24-3-61)