§ 62-89.2. Post retirement cost of living adjustment (COLA) program.

(a)

Eligible retirant/beneficiary. "Eligible retirant/beneficiary" shall include any city retirant (or beneficiary of any deceased retirant) (excluding any hospital or housing commission retirant or beneficiary of hospital or housing commission retirant) who has been retired five or more years on August 1 of each year.

(b)

Individual payment amount. The individual payment amount shall be based on the retirant's years of retirement and years of service divided by the eligible groups' total years of retirement and years of service multiplied by the amount of the COLA pool value.

(c)

COLA pool value.

(1)

The COLA pool value to distribute in 2006 will be $67,456.00 based on the changes in the consumer price index (CPI) from calendar year ending December 31, 2005.

(2)

The COLA pool value to distribute in 2007 will be $68,858.00 based on the changes in the consumer price index (CPI) from calendar year ending December 31, 2006.

(3)

The COLA pool value to distribute in 2008 will be $68,858.00 based on the minimum COLA pool value as recommended and adopted by the retirement board and not the final COLA pool value for 2008.

(d)

Consumer Price Index (CPI). The CPI used by the city for the purposes of this section will be the U.S. Department of Labor statistic data for all urban consumers, U.S. city average, not seasonally adjusted.

(e)

Corridor. Annual increases in the COLA pool value are subject to a maximum annual increase of five percent and a minimum annual increase of zero percent where the minimum COLA pool value in any year is the amount that was distributed during the prior year.

(f)

Annual plan amendment. To comply with IRS minimum distribution rules, the municipal council must amend the retirement plan ordinance each year that the COLA pool value increases.

(Ord. No. 05-354, 6-20-05; Ord. No. 06-367, § 1, 7-3-06; Ord. No. 07-377, § 1, 7-16-07; Ord. No. 08-388, § 1, 8-18-08)