Section 29-406 - Computation of three percent limited adjustment [Amendment subject to abrogation]. - Maryland Statutes

§ 29-406. Computation of three percent limited adjustment [Amendment subject to abrogation].
 

(a)  In general.-  

(1) Except as provided in paragraph (2) of this subsection and subject to subsection (c) of this section, the cost-of-living adjustment made under this Part II equals the initial allowance multiplied by a fraction that has: 

(i) as its numerator, the amount obtained by subtracting the Consumer Price Index for the calendar year ending December 31 of the preceding fiscal year from the base year Consumer Price Index described in subsection (b) of this section; and 

(ii) as its denominator, the base year Consumer Price Index described in subsection (b) of this section. 

(2) If the cost-of-living adjustment determined under paragraph (1) of this subsection for fiscal year 2011 would result in an allowance payable for fiscal year 2011 that is less than the allowance payable for fiscal year 2010, the annual cost-of-living adjustment for fiscal year 2011 shall equal $0.00. 

(b)  Base year.- The base year Consumer Price Index referred to in subsection (a) of this section equals the later of: 

(1) the Consumer Price Index for the calendar year ending December 31 of the fiscal year that preceded the last adjustment; or 

(2) (i) for a retiree, the Consumer Price Index for the calendar year ending December 31 of the fiscal year in which the retiree was last employed as a member; or 

(ii) for a former member who elected a vested allowance in accordance with § 29-303 of this title, the Consumer Price Index for the calendar year ending December 31 of the fiscal year in which the former member became 62 years old. 

(c)  Limit on adjustment.- The cost-of-living adjustment under this section may not exceed 3% of the initial allowance. 
 

[An. Code 1957, art. 73B, §§ 4-413, 5-412, 8-405, 10-221; 1994, ch. 6, § 2; 2004, ch. 25, § 6; 2010, chs. 56, 57.]