§ 2-87.2. Cost-of-living adjustment.

(a)

Cost-of-living adjustment created. A cost-of-living adjustment is hereby created beginning with persons who retire on or after October 1, 2004. The cost-of-living adjustment shall be determined on an annual basis by the board of trustees based upon the criteria set forth in this section and shall not constitute a vested benefit.

(b)

Cost-of-living adjustment calculated. The cost-of-living adjustment shall be based upon actuarial gains in the plan. The funds required for the payment of any cost-of-living adjustment shall be derived solely from the investment return of plan assets, both realized and unrealized, as allocable to police officers and beneficiaries receiving benefits from the plan, and only in such amounts as exceeds the investment return assumed for purposes of the actuarial valuation of the plan and a total experience gain for the plan as compared to the actuarial assumptions.

(c)

Amount of the cost-of-living adjustment. The cost-of-living adjustment shall be in the form of a thirteenth check which shall not exceed the regular monthly retirement benefit of the member. The benefit shall be paid following the issuance of the actuarial valuation report and shall be based on the actuarial gains and losses as determined in the actuarial report for the preceding year. Any payments under this section shall be expressed as a percentage of the retiree's current benefit, and such percentage shall be uniform in respect to all retirees in any given year.

(d)

To whom cost-of-living adjustment is paid. When the cost-of-living adjustment is paid, it will be paid to all members of Tier One, who retired and separated from city employment on or after October 1, 2004. The first payment will be available in the first year following retirement and separation. Retirees whose payments start during a fiscal year shall receive a pro rata payment reflecting the number of payments received in the year immediately prior thereto divided by twelve (12). The board may adopt any administrative rules necessary to administer the thirteenth check program. Notwithstanding anything to the contrary, members of Tier Two shall not be entitled to any cost-of-living adjustment, or any thirteenth check program.

(Ord. No. 04O-11-230, § 7, 12-13-04; Ord. No. 09O-07-129, § 5, 9-14-09)