§ 17.3. Post-retirement benefit increases for Class D members.
(a) Scope of subsection.
This section applies to retirement benefit increases for Class D members.
(b) In general.
Except as otherwise provided in this section, an eligible retiree or beneficiary is entitled to receive a guaranteed increase in periodic benefits equal to the greater of:
(1) 1.5%; or
(2) the amount of any corresponding guaranteed post-retirement benefit increase provided by the Fire and Police Employees' Retirement System to its members.
(c) Eligibility.
A retiree or beneficiary is eligible for the benefit increase specified in subsection (b) of this section if:
(1) as of a particular June 30, the retiree and the beneficiary, whether individually or in combination with the other, have been receiving periodic benefit payments for at least 12 consecutive months; and
(2) as of the preceding June 30, the Class D funded status, as defined in City Code Article 22A, § 5-3(c)(4)(ii), is 85% or more.
(d) Modification of rate.
(1) If the Class D funded status as of the preceding June 30 is less than 85%, but is 70% or more, the guaranteed increase in periodic benefits under subsection (b) of this section will be reduced to 1% for all eligible retirees and beneficiaries until the June 30 following the first ensuing June 30 as of which the Class D funded status is 85% or more.
(2) If the Class D funded status as of the preceding June 30 is less than 70%, the guaranteed increase in periodic benefits under subsection (b) of this section will be reduced to 0% for all eligible retirees and beneficiaries until the June 30 following the first ensuing June 30 as of which the Class D funded status is 70% or more.
(e) Date benefit increase begins.
An eligible retiree or beneficiary will receive the benefit increase beginning in January of the year following the June 30 on which he or she became eligible.
(f) Administration of benefit increases.
(1) The benefit increase provided by this section shall be funded by this System as a single-premium paid-up annuity, representing the actuarially determined value of a payment stream for the life of the retiree.
(2) It is intended that any benefit increase continue for the lifetime of the retiree and any beneficiary, consistent with the option in effect under § 9.2(k) {"Method of payment"} of this subtitle.
(3) The guaranteed benefit increase provided by this section is effective as of each January 1, regardless of the investment performance of this System's investment funds.
(4) The benefit increase provided by this section is payable in the same form as the post-retirement benefit payments being received by the eligible retiree or beneficiary.
(5) Except as required by subsection (b)(2) of this section, each eligible retiree and beneficiary shall receive an equal percentage benefit increase.