50 U.S.C. § 2131: Cost-of-living adjustment of annuities

Each cost-of-living annuity increase under this section shall be identical to the corresponding percentage increase under section 8340(b) of title 5 . A cost-of-living increase made under paragraph (1) shall become effective under this section on the effective date of each such increase under section 8340(b) of title 5 . Except as provided in subsection (b), each such increase shall be applied to each annuity payable from the fund which has a commencing date not later than the effective date of the increase. 1 ⁄ 12 of the applicable percent change computed under subsection (a), multiplied by for which the annuity was payable from the fund before the effective date of the increase, or in the case of a surviving spouse, former spouse, previous 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 (other than a child entitled to an annuity under section 2031(d) of this title ) shall be increased by the total percentage increase the annuitant was receiving under this section at death. For purposes of computing the annuity of a child under section 2031(d) of this title that commences after October 31, 1969 , the dollar amounts specified in section 2031(d)(3) of this title shall each be increased by the total percentage increases allowed and in force under this section on or after such day and, in the case of a deceased annuitant, the percentages specified in that section shall be increased by the total percent allowed and in force to the annuitant under this section on or after such day. An annuity increase provided by this section may not be computed on any additional annuity purchased at retirement by voluntary contributions. The monthly annuity installment, after adjustment under this section, shall be rounded to the next lowest dollar, except that such installment shall, after adjustment, reflect an increase of at least $1. the maximum pay payable for GS–15 30 days before the effective date of the adjustment under this section; or beginning on the date on which the annuity commenced (or, in the case of a survivor of the retired participant, the date on which the participant’s annuity commenced), and ending on the effective date of the adjustment under this section. For purposes of paragraph (1), the term “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.