Please educate me with Purchasing power protection
I plan to retire in 2017. Based on today's dollar, I will receive a monthly pension of $4300. I have two annual benefit adjustments upon retirement:
1. automatic benefit increase equal to 2 percent of your initial benefit
( this one I understand, will receive $86 increase every year but based on adding to $4300)
2. Purchasing power protection -one year supplemental benefit payments when benefit has fallen below a certain level of purchasing power. Purchasing power protection level is currently set at 85% of your initial benefit.
What does Number 2 mean? Roughly how many years will it take before I will receive the benefit on number 2 and what should my new benefit amount be instead of $4300.
Thanks in advance