§ 5-1-235. POSTRETIREMENT INCREASES IN ALLOWANCES.

(a)

This section applies only to:

(1)

A beneficiary who retires with at least twenty (20) years of creditable service if the member began service before July 1, 2007;

(2)

A beneficiary who retires with at least twenty-five (25) years of creditable service if the member began service on or after July 1, 2007; and

(3)

A beneficiary who retired before July 1, 2010.

(b)

(1)

Commencing as of July 1, 1983, the retirement allowance, exclusive of any amount computed under § 5-1-234 of this subtitle, of each beneficiary who retired before July 1, 2010 and who has been retired for at least twelve (12) months shall be increased in accordance with the procedures of this section.

(2)

Commencing as of July 1, 2010, the retirement allowance, exclusive of any amount computed under § 5-1-234 of this subtitle, of a beneficiary who has not selected or participated in a DROP program under Subtitle 3 of this title and who has been retired for at least sixty (60) months shall be increased in accordance with the procedures of this section.

(3)

Commencing as of July 1, 2010, the retirement allowance, exclusive of any amount computed under § 5-1-234 of this subtitle, of a beneficiary who has selected or participated in a DROP program under Subtitle 3 of this title and who has been retired for at least forty-eight (48) months shall be increased in accordance with the procedures of this section.

(4)

In the case of a beneficiary who elected option 1, the factor of increase shall be applied to the retirement allowance before optional modification, and in the case of a beneficiary who elected option 2 or option 3, it shall be applied to the retirement allowance after optional modification.

(c)

As of the end of each calendar year commencing with the year ending December 31, 1989, the increase in the Consumer Price Index to such index as of December 31, 1988, or as of the latest year-end shall be determined, subject to the provisions of subsection (d) of this section. The retirement allowance shall be increased by an amount equal to the increase in the Consumer Price Index, not to exceed three (3) percent. All increases calculated under this section shall take effect July 1, 1990, and on July 1st each year thereafter.

(d)

If the funds accumulated from excess investment income in the postretirement increase fund are insufficient to cover the actuarial reserves required to provide the full percentage increase determined under subsection (c) of this section, then the appropriate increase shall be calculated to the nearest one-fourth (1/4) of one (1) percent as such funds will allow but not less than one (1) percent. If the funds are insufficient to provide a one (1) percent increase, then no increase shall be granted.

(e)

For purposes of this section, "Consumer Price Index" shall mean the Consumer Price Index—All Urban Consumers—United States City Average—All Items (CPI-U), as published by the United States Department of Labor, Bureau of Labor Statistics.

(1988 Code, § 23-65) (Bill No. 187-89, § 1, 2-12-1990; Bill No. 32-03, § 1, 7-1-2004; Bill No. 30-10, § 2, 7-1-2010)