If you first began participation prior to January 1, 2011:
Each January 1st, your retirement annuity will automatically receive a 3% compounded increase. The first increase will begin on the January 1st following the month in which you retire and will be prorated for the number of months you were retired.
If you first began participation on or after January 1, 2011:
A non-compounding annual increase will apply to the monthly retirement annuity beginning on the January 1 occurring on or after the later of your attainment of age 67 or the 1st anniversary of the commencement of your annuity. The annual increases will be the lesser of 1/2 of the Consumer Price Index – Urban (CPI-U) from the preceding year or 3%, computed on the original retirement annuity amount. If for any year the CPI-U decreases or is zero, no annual increase will apply.