Cost-of-living adjustment of annuities
For the purpose of this section—
the term “base quarter”, as used with respect to a year, means the calendar quarter ending on September 30, of such year; and
the price index for a base quarter is the arithmetical mean of such index for the 3 months comprising such quarter.
Except as provided in subsection (c) of this section, effective December 1 of each year, each annuity payable from the Fund having a commencing date not later than such December 1 shall be increased by the percent change in the price index for the base quarter of such year over the price index for the base quarter of the preceding year in which an adjustment under this subsection was made, adjusted to the nearest ⅒ of 1 percent.
Eligibility for an annuity increase under this section is governed by the commencing date of each annuity payable from the Fund as of the effective date of an increase, except as follows:
The first increase (if any) made under subsection (b) of this section to an annuity which is payable from the Fund to an employee or Member who retires, to the widow, widower, or former spouse,1
1⁄12 of the applicable percent change computed under subsection (b) of this section, multiplied by
the number of months (not to exceed 12 months, counting any portion of a month as a month)—
for which the annuity was payable from the Fund before the effective date of the increase, or
in the case of a widow, widower, former spouse, or insurable interest designee of a deceased annuitant whose annuity has not been so increased, since the annuity was first payable to the deceased annuitant.
Effective from its commencing date, an annuity payable from the Fund to an annuitant’s survivor (except a child entitled under section 8341(e) of this title), which annuity commences the day after the death of the annuitant and after the effective date of the first increase under this section, shall be increased by the total percent increase the annuitant was receiving under this section at death. However, the increase in a survivor annuity authorized by section 8 of the Act of May 29, 1930, as amended to
For the purpose of computing the annuity of a child under section 8341(e) of this title that commences after
This section does not authorize an increase in an additional annuity purchased at retirement by voluntary contributions.
The monthly installment of annuity after adjustment under this section shall be rounded to the next lowest dollar. However, the monthly installment shall after adjustment reflect an increase of at least $1.
Effective
an employee or Member before
a retired employee or Member whose retirement was based on a separation from service before
is increased by 10 percent.
An annuity shall not be increased by reason of any adjustment under this section to an amount which exceeds the greater of—
the maximum pay payable for GS–15 30 days before the effective date of the adjustment under this section; or
the final pay (or average pay, if higher) of the employee or Member with respect to whom the annuity is paid, increased by the overall annual average percentage adjustments (compounded) in rates of pay of the General Schedule under subchapter I of chapter 53 of this title during the period—
beginning on the date the annuity commenced (or, in the case of a survivor of the retired employee or Member, the date the employee’s or Member’s annuity commenced), and
ending on the effective date of the adjustment under this section.
For the purposes of paragraph (1) of this subsection, “pay” means the rate of salary or basic pay as payable under any provision of law, including any provision of law limiting the expenditure of appropriated funds.
Source
(Pub. L. 89–554,Notes
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Historical and Revision Notes |
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1966 Act |
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Derivation | U.S. Code | Revised Statutes and Statutes at Large |
5 U.S.C. 2268. | July 31, 1956, ch. 804, § 401 “Sec. 18”; added Oct. 11, 1962, Pub. L. 87–793, § 1102(b) (less so much as redesignated § 18 as 19), 76 Stat. 869. |
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1967 Act |
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Section of title 5 | Source (U.S. Code) | Source (Statutes at Large) |
8340(a) 8340(b) 8340(c) 8340(d) | 5 App.: 2268(a), (f). 5 App.: 2268(b). 5 App.: 2268(c). 5 App.: 2268(d). | Sept. 27, 1965, Pub. L. 89–205, § 1(c), 79 Stat. 840. Nov. 1, 1965, Pub. L. 89–314, § 1, 79 Stat. 1162. |
8340(e) 8340(f) | 5 App.: 2268(e). 5 App.: 2268(g). | July 18, 1966, Pub. L. 89–504, § 507, 80 Stat. 302. |
References in Text
Amendments
Effective Date of 1984 Amendment
The amendments made by subsection (a) [amending this section] shall take effect on the date of the enactment of this Act [
For purposes of the first adjustment under section 8340(b) of title 5, United States Code (as amended by subsection (a)), the base quarter ending
As used in subparagraph (A), the term ‘base quarter’ has the meaning given such term by section 8340(a)(1) of title 5, United States Code (as amended by subsection (a)).”
Effective Date of 1982 Amendment
Effective Date of 1981 Amendment
Effective Date of 1980 Amendment
The amendment made by subsection (a)(1) [amending this section] shall apply with respect to annuities commencing after the 45th day after the date of the enactment of this Act [
The amendment made by subsection (a)(2) [amending this section] shall take effect with respect to any annuity increase which takes effect after the date of the enactment of this Act [
Effective Date of 1978 Amendment
Effective Date of 1976 Amendment
Effective Date of 1973 Amendment
Effective Date of 1969 Amendment
Delay in Cost-of-Living Adjustments During Fiscal Years 1994, 1995, and 1996
Applicability.—
This section shall apply with respect to any cost-of-living increase scheduled to take effect, during fiscal year 1994, 1995, or 1996, under—
section 8340(b) or 8462(b) of title 5, United States Code;
section 826 or 858 of the Foreign Service Act of 1980 [22 U.S.C. 4066, 4071g]; or
section 291 of the Central Intelligence Agency Retirement Act (50 U.S.C. 2131), as set forth in section 802 of the CIARDS Technical Corrections Act of 1992 (Public Law 102–496; 106 Stat. 3196).
Delay in Effective Date of Adjustments.—
A cost-of-living increase described in subsection (a) shall not take effect until the first day of the third calendar month after the date such increase would otherwise take effect.
Rule of Construction.—
Nothing in this section shall be considered to affect any determination relating to eligibility for an annuity increase or the amount of the first increase in an annuity under section 8340(b) or (c) or section 8462(b) or (c) of title 5, United States Code, or comparable provisions of law.”
Time of Payment of Annuity or Retired or Retirement Pay Which President Adjusts
Cost-of-Living Adjustments During Fiscal Years 1983, 1984, and 1985
Except as provided in paragraph (3), the cost-of-living increase under any Government retirement system in annuity or retired or retainer pay of any early retiree taking effect in each of fiscal years 1983, 1984, and 1985, shall be equal to one-half of the assumed increase in the price index for that year.
For purposes of this subsection, an individual shall be considered to be an early retiree if—
the individual is under the age of 62 years as of the effective date of the cost-of-living increase involved (determined without regard to subsection (b));
the annuity or retired or retainer pay of the individual is not computed in whole or in part based on any disability of the individual; and
the annuity or retired or retainer pay of the individual is based upon the Government service of the individual.
If the percentage increase in the price index for fiscal year 1983, 1984, or 1985 (as determined by the Office of Personnel Management under section 8340(b) of title 5, United States Code) exceeds the assumed increase in the price index for that year, then the increase in the annuity or retired or retainer pay of an early retiree under paragraph (1) taking effect in that fiscal year shall be equal to—
one-half of the assumed increase in the price index for that year, plus
the amount by which the percentage increase in the price index exceeds the assumed price index increase.
If the percentage increase in the price index for fiscal year 1985 (as determined by the Office of Personnel Management under section 8340(b) of title 5, United States Code) is less than the assumed increase in the price index for that year, then the increase in the annuity or retired or retainer pay of an early retiree under paragraph (1) taking effect in that fiscal year shall be equal to the percentage increase in the price index for that year (as so determined).
As used in this subsection—
the term ‘price index’ has the meaning given such term in section 8331(15) of title 5, United States Code; and
the term ‘assumed increase in the price index’ means—
6.6 percent, in the case of fiscal year 1983,
7.2 percent, in the case of fiscal year 1984, and
6.6 percent, in the case of fiscal year 1985.
The amount of any survivor annuity which is based on the service of any early retiree subject to this subsection shall be computed as if this subsection had not been enacted.
[Repealed. Pub. L. 98–270, title II, § 201(c)(2), Apr. 18, 1984, 98 Stat. 158.]
For purposes of this section, the term ‘cost-of-living increase under a Government retirement system’ means any increase under—
section 8340(b) of title 5, United States Code;
section 826 of the Foreign Service Act of 1980 [22 U.S.C. 4066];
the Central Intelligence Agency Act of 1964 for Certain Employees ([former] 50 U.S.C. 403 note);
section 1401a(b) of title 10, United States Code; or
any other adjustment of any annuity under a retirement system for Government officers or employees which the President determines, by Executive order, is based on adjustments under any of the provisions referred to in the preceding paragraph.”