What happens if the annual cost-of-living index is negative, and the accumulated or “banked” account is already negative or zero?
A. The negative cost-of-living figure will be accumulated or “banked” and offset against positive increases in the cost-of-living index in future years. In this situation the retired member will not receive a cost-of-living adjustment in the current year and will not receive a cost-of-living adjustment in future years until the accumulations or “banked” amount is positive.
