There is hereby provided, commencing October 1, 1988, to each person whose employer participated in the Employees’ Retirement System pursuant to Section 36-27-7 or section 36-27-7.1, whose effective date of retirement for purposes of receiving benefits from the Employees’ Retirement System is prior to October 1, 1987, and to certain beneficiaries of deceased members and deceased retirees of such employers, provided the effective date of retirement or death for such deceased retiree or deceased member for purposes of receiving benefits from the Employees’ Retirement System was prior to October 1, 1987, and who is receiving a monthly allowance from the Employees’ Retirement System a cost-of-living increase as follows:

1. (1) Fifty cents per month for each year of service attained by said retiree plus $1.75 per month for each year of retirement attained by said retiree for each retiree selecting the maximum retirement allowance or Option 1.
2. (2) Fifty cents per month for each year of service attained by said retiree plus $1.75 per month for each year of retirement attained by said retiree reduced by the retiree’s option selection factor for each retiree selecting Option 2, 3 or 4.
3. (3) Fifty cents per month for each year of service attained by said deceased member or deceased retiree plus $1.75 per month for each year since the date of death of such deceased member or in the case of a deceased retiree since his effective date of retirement, reduced by the survivor’s option factor for each beneficiary receiving monthly benefits from the Employees’ Retirement System.

(Acts 1988, No. 88-599, p. 929, §3; Acts 1989, No. 89-525, p. 1074, §1.)