Indiana Code Title 36. Local Government § 36-8-8.5-13

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:

(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: