Sec. 13. (a) A cost of living adjustment to the monthly benefit of a member of the 1925 fund, 1937 fund, or 1953 fund is determined in STEP FOUR of the following formula:

STEP ONE: Calculate a percentage by dividing:

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Terms Used In Indiana Code 36-8-8.5-13

  • DROP: means the deferred retirement option plan established by this chapter. See Indiana Code 36-8-8.5-4
  • DROP retirement date: means the future retirement date selected by a member at the time the member makes a DROP election. See Indiana Code 36-8-8.5-8
  • Year: means a calendar year, unless otherwise expressed. See Indiana Code 1-1-4-5
(A) the amount of any increase in the salary of a first class officer or firefighter, whichever is applicable; by

(B) the prior year‘s salary of a first class officer or firefighter, whichever is applicable.

STEP TWO: Add:

(A) the member’s DROP frozen benefit; and

(B) the amount of any prior cost of living adjustments calculated under this section.

STEP THREE: Multiply the percentage determined under STEP ONE by the sum determined under STEP TWO.

STEP FOUR: Add the product determined under STEP THREE to the sum determined under STEP TWO.

     (b) A cost of living adjustment to the monthly benefit of a member of the 1977 fund is determined under the provisions of IC 36-8-8, as applied after:

(1) the member’s DROP retirement date; or

(2) the date the member retires because of a disability as provided under section 16.5(d) of this chapter.

As added by P.L.62-2002, SEC.5. Amended by P.L.148-2007, SEC.4.

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