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C. For Fiscal Year 2015-16, bargaining unit employees shall receive a 3.5% cost of living increase effective the first full pay period in October 2015. Topped -out employees shall receive a $1,000 lump sum payment to be paid in the first full pay period of April 2016. Additionally, effective the first full pay period following April 1, 2016, eligible employees will proceed to the next step of their respective pay plan. D. Step moves, cost -of -living increases, pay scale adjustments or lump sum payments, if any, after September 30, 2016 shall be established through collective bargaining for a successor Agreement. E. In the event of promotion, the employee shall move to the same step of the pay plan for the higher rank on the first day of the pay period nearest to the date of promotion. In the event the same step of the pay plan does not exist for the higher rank, the employee shall move to the lowest step of the higher rank and shall not be eligible to receive the first subsequent step increase provided in 34.02 B. 34.3 The County shall indemnify, exonerate, and save harmless the Union from any claims and/or judgments against the Employer and/or Union based upon the application of the FLSA 207(k) exemption. The Employer shall give written notice to the Union by registered mail addressed to the President of the local of any claim, action, suit, or proceeding brought by an employee, person, firm, or corporation against the Employer based in whole or in part based upon the application of the FLSA 207(k) exemption. The County shall defend the said claim, action, suit, or proceeding against the County or against the Union at its own cost and without expense to the Union. 34.4 Employees who retire under regular FRS guidelines after the termination date of this agreement but prior to the ratification of a new agreement will be eligible for retroactive payments calculated in the same manner as other bargaining unit employees.