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As a result, in October 1991, the original COLA Fund was amended
to provide for a 1-percent cost-of-living benefit. In December
1991, the COLA Fund paid .96 percent as a COLA benefit, and the
NPF Fund paid 2.04 percent.
In March 1992, petitioner adopted a new article 8 that
formally added the NPF COLA to the Plan, effective retroactively
to January 1, 1991. Initially, the March 1992 amendment provided
that the NPF COLA would equal the difference between 3 percent
and the amount paid from the COLA Fund. In October 1992, the
Plan was restated retroactively to January 1, 1991, to provide
for a 2-percent benefit (subject to minor adjustments) that was
not dependent on the amount paid from the COLA Fund; it was
anticipated that the COLA Fund would pay a 1-percent benefit if
it had sufficient assets. The new article 8 provided NPF COLAs
to all eligible employees without regard to whether the NPF COLA
provision was in effect when the eligible employee retired or
separated from service. Thus, plan participants who retired or
separated from service before January 1, 1991 (pre-1991
retirees), were provided with the NPF COLAs.
Pursuant to the Plan’s amendments, the NPF Fund paid for the
respective years from 1992 through 1994 a COLA of 2 percent, 2.2
percent, and 2 percent, multiplied by the number of years (up to
15) that the pensioner had received a pension from the Plan. NPF
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Last modified: May 25, 2011