§ 2.28.140. Indexing of deferred retirement benefits.

An employee in Plan No. 1 or Plan No. 2 who terminates employment and elects to defer receipt of his or her retirement benefit or elects to leave his or her contributions in the fund until such time he or she is eligible to receive a retirement benefit, shall, if such employee has a deferral period of at least one full month, be entitled to a retirement benefit calculated as follows:

(a)

A base retirement benefit calculated under Section 2.28.120; and

(b)

A benefit (which may calculate as no actual increase in benefits) which shall be calculated for each calendar year or full months, in the case of a partial year in such employee's deferral period.

The benefit calculation in subsection (b) of this section shall be the base benefit calculation in subsection (a) adjusted annually for each calendar year or full months in the employee's deferral period. The determination of whether an employee is due a benefit increase for a specific calendar year in which the employee has at least one full month of deferral period shall be made by determining, for that calendar year, the smaller of (1) 1.055; or (2) the ratio of national average earnings for the second preceding calendar year to national average earnings for the third preceding calendar year. If the smaller of these two figures is greater than 1.0, the employee shall be entitled to a benefit increase for that calendar year in the amount of the employee's base retirement benefit, as calculated under subsection (a) of this section, multiplied by such smaller figure. Any benefit increase for a partial year in the employee's deferral period shall be pro-rated for each month, based on the full year increase.

(Ord. No. 44-812 § 15; Ord. No. 47-451, § 5, 3-27-07)