(a) Death After Age 65. If a former governor dies after reaching sixty-five (65) years of age, one half (½) of the amount of the former governor's retirement allowance shall be payable thereafter to the former governor's surviving spouse to continue until the surviving spouse's remarriage or death.

(b) Death Before Age 65. If a former governor dies before reaching sixty-five (65) years of age, a survivor benefit shall be payable to the former governor's surviving spouse thereafter to continue until the surviving spouse's remarriage or death. Such survivor benefit shall be a retirement allowance commencing on the first day of the calendar month next following the former governor's date of death, which shall be the actuarial equivalent of a retirement allowance payable to the surviving spouse at sixty-five (65) years of age equal to one half (½) of the amount of the retirement allowance which the former governor would have received if the former governor had lived to sixty-five (65) years of age.

(c)

(1) Notwithstanding any provision to the contrary, if the surviving spouse of a former governor was married to the former governor during any period while the former governor served in office as governor, the monthly survivor benefit payable to such surviving spouse under this section shall be subject to adjustment pursuant to subdivisions (c)(2) and (3).

(2) Effective July 1, 1999, if there is a percentage increase in the consumer price index, as determined in accordance with § 8-36-701(a)(1), of at least one half of one percent (0.5%), the monthly survivor benefit payable to each such surviving spouse in receipt of an allowance prior to the July 1 next following shall be increased commencing on such July 1 by an amount determined by multiplying the surviving spouse's then current monthly survivor benefit by such percentage, but not to exceed three percent (3%). Such increased benefit shall be the surviving spouse's base benefit. Notwithstanding the foregoing, if such percentage is one half of one percent (0.5%) or more but less than one percent (1%), the percentage shall be rounded to one percent (1%).

(3) Notwithstanding subdivision (c)(2), in any year in which there is an increase in the annual salary of the office of the governor, the surviving spouse shall, on July 1 of such year, have such surviving spouse's then current base benefit recomputed according to the then annual salary of the office of the governor. For recomputation purposes, previous cost-of-living adjustments given pursuant to subdivision (c)(2) shall not be included. The recomputed benefit shall be compared to the current base benefit received by the surviving spouse. If the recomputed benefit is larger, the surviving spouse's base benefit shall become the recomputed benefit effective on July 1 of such year. The new base benefit shall thereafter be subject to the cost-of-living provisions of subdivision (c)(2).

(4) Any increase in benefits provided by this subsection (c) shall not be paid retroactively, but shall become effective on July 1, 1999.