(a) In addition to the foregoing amount an additional cost-of-living adjustment is provided effective October 1, 1989 as follows:
(1) One dollar per month for each year of service attained by said retiree for each retiree selecting the maximum retirement allowance or Option 1.
(2) One dollar per month for each year of service attained by said retiree reduced by the retiree’s option election factor for each retiree selecting Options 2, 3 or 4.
(3) One dollar per month for each year of service attained by said deceased member or deceased retiree reduced by the survivor’s option factor for each beneficiary receiving monthly benefits from the Teachers’ Retirement System.
(b) The benefits provided in this section are limited to those retirees and beneficiaries of deceased members and deceased retirees whose participation in the Employees’ Retirement System was based on Section 36-27-6, and whose employer at the time of retirement was a local board of education or a state supported institution of higher education. The benefits granted herein shall not apply to any other participants in the Employees’ Retirement System.