Section 29-418 - Computation of five percent limited adjustment [Amendment subject to abrogation]. - Maryland Statutes

§ 29-418. Computation of five percent limited adjustment [Amendment subject to abrogation].
 

(a)  In general.-  

(1) Except as provided in paragraph (2) of this subsection, each fiscal year, the Board of Trustees shall adjust an allowance by multiplying the allowance for the preceding fiscal year, exclusive of any additional voluntary annuity, by a rate not exceeding 5%, that is obtained by dividing the Consumer Price Index for the calendar year ending December 31, in the preceding fiscal year by the Consumer Price Index for the calendar year ending December 31 in the second preceding fiscal year. 

(2) If the 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 for fiscal year 2010, the adjustment for fiscal year 2011 shall equal $0.00. 

(b)  Timing of adjustment.- The adjustment under subsection (a) of this section shall begin the second July 1 after the day preceding the retiree's date of retirement or the former member's effective date for receipt of a vested allowance. 

(c)  Computation of adjusted allowance.-  

(1) Except as provided in paragraph (2) of this subsection, the total allowance payable in each fiscal year shall be the sum of: 

(i) the annual rate of allowance paid during the preceding fiscal year; 

(ii) the adjustment in allowance provided for under this section; and 

(iii) any additional annuity. 

(2) For fiscal year 2012, the allowance payable as provided in subsection (a) of this section shall be reduced by the difference between the allowance payable for fiscal year 2010 and the allowance that would have been paid for fiscal year 2011 if the adjustment had been calculated as provided under subsection (a) of this section. 
 

[An. Code 1957, art. 73B, §§ 2-415, 3-412, 8-405; 1994, ch. 6, § 2; 2010, chs. 56, 57.]