(a) This section applies only to an allowance received by a former member, retiree, or surviving beneficiary of a deceased member, former member, or retiree:
(1) of the Employees’ Retirement System or the Teachers’ Retirement System who elected Selection B (Limited cost-of-living adjustment); or
(2) who transferred to the Law Enforcement Officers’ Pension System from the Employees’ Retirement System and had elected Selection B (Limited cost-of-living adjustment).
(b) A cost-of-living adjustment payable under this section shall be a compound cost-of-living adjustment computed in accordance with § 29-402(d)(2) of this subtitle.
(c) A cost-of-living adjustment payable under this section shall be subject to a cost-of-living rate cap of 5%.