§ 36A. Post-retirement benefit increases to certain retirees and beneficiaries.

(a) Eligibility.

Each retired member and each beneficiary of a deceased member receiving periodic retirement, death or survivorship benefits as of June 30 is eligible to receive an increase in the periodic benefit on the following January 1, provided that the retired member or beneficiary meets the applicable age requirement set forth in §36A(b)(2). Eligibility for increases to a beneficiary of a deceased retired member shall be determined as if the beneficiary was receiving retirement benefits on the date of death.

(b) Amount of benefit increase payable for fiscal years beginning on or after July 1, 2009.

(1) The post-retirement benefit increase under paragraph (2)(iii) of this subsection is first payable in January 2011 for the fiscal year ending June 30, 2010. The post-retirement increase under paragraph (2)(ii) of this subsection is first payable in January 2012 for the fiscal year ending June 30, 2011.

(2) As of the applicable effective date provided in paragraph (1) of this subsection, and each succeeding June 30, a member or beneficiary who, as of that June 30, is eligible under subsection (a) of this section shall receive the following increase in his or her periodic benefit, the increase to commence effective as of the immediately following January:

(i) A member or beneficiary who, as of that June 30, has not attained age 55, shall receive no increase.

(ii) A member or beneficiary who, as of that June 30, has attained age 55 but has not attained age 65, shall receive an increase equal to 1.0%.

(iii) A member who, as of that June 30, either has attained age 65 or has retired with a 100% line-of-duty disability under § 34(f-1), and a beneficiary who, as of that June 30, either has attained age 65 or is a beneficiary of a member who has retired with a 100% line-of-duty disability under § 34(f-1), shall receive an increase equal to 2.0%.

(c) Transfer of assets and liabilities.

(1) The assets of the Paid-Up Benefit Fund and the Contingency Reserve Fund shall be transferred to the general asset account.

(2) The post-retirement benefit liabilities of the Paid-Up Benefit Fund shall be transferred to the pension reserve.

(3) Following these transfers, the Paid-Up Benefit Fund and the Contingency Reserve Fund shall be discontinued.

(d) Guarantee of post-retirement increases.

Effective June 30, 2010, all post-retirement benefit increases payable under this § 36A become the obligation of the City of Baltimore and are guaranteed under the provisions of § 37 of this subtitle.