5 U.S.C. § 8340: Cost-of-living adjustment of annuities

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. 1 ⁄ 12 of the applicable percent change computed under subsection (b) of this section, multiplied by 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 July 6, 1950 , shall be computed as if the annuity commencing date had been the effective date of the first increase under this section. For the purpose of computing the annuity of a child under section 8341(e) of this title that commences after October 31, 1969 , the items $900, $1,080, $2,700, and $3,240 appearing in section 8341(e) of this title shall be increased by the total percent increases allowed and in force under this section on or after such day and, in case of a deceased annuitant, the items 60 percent and 75 percent appearing in section 8341(e) of this title shall be increased by the total percent allowed and in force to the annuitant under this section on or after such day. 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. an employee or Member before October 11, 1962 ; or a retired employee or Member whose retirement was based on a separation from service before October 11, 1962 ; the maximum pay payable for GS–15 30 days before the effective date of the adjustment under this section; or 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. The amendments made by subsection (a) [amending this section] shall take effect on the date of the enactment of this Act [ Apr. 18, 1984 ], except that no adjustment under section 8340(b) of title 5 , United States Code (as amended by such subsection), shall be made during the period beginning on the date of the enactment of this Act and ending November 30, 1984 . 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 September 30, 1983 , shall be considered to have been a base quarter in which an adjustment under such section (as so amended) was made. 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)).” 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 [ Dec. 5, 1980 ]. 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 [ Dec. 5, 1980 ].” 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 ). 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. 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.” 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. 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. 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. the term ‘price index’ has the meaning given such term in section 8331(15) of title 5 , United States Code; and 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. 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.”