Tier 1:
If the member retired under Tier 1, the surviving spouse pension is increased
each January 1 by 3% of the original amount. When a surviving spouse pension
is awarded upon the death of an active or inactive member, the 3% for
the first year is prorated. When a surviving spouse pension is awarded
upon the death of a member receiving a pension, the full 3% is paid the
next January 1.
Persons receiving a surviving spouse pension are also eligible for a supplemental benefit payment each July if they and/or their spouses were eligible for 12 months of retirement benefits. (See 5.20 B. 14. Supplemental Benefit Payment to Retired Members and Surviving Spouses)
Tier 2:
If the member retired under Tier 2, the surviving spouse pension is increased
each January 1 by the lower of 3% or one-half of the increase in the Consumer
Price Index-Urban (CPI-U) for the preceding 12 months as of September
of the original amount. If the CPI-U decreases or is zero, no increase
is paid. When a surviving spouse pension is awarded upon the death of
a member receiving a pension, the full annual increase is paid the next
January 1.
Persons receiving a surviving spouse pension are also eligible for a supplemental benefit payment each July if they and/or their spouses were eligible for 12 months of retirement benefits. (See 5.20 B. 14. Supplemental Benefit Payment to Retired Members and Surviving Spouses)