5 CFR 841.706 - Increases on combined CSRS/FERS annuities.
(b) The initial monthly rate is computed by -
(4) Dividing the sum of the reduced amounts computed under paragraph (b)(3) of this section by 12; then
(5) Dropping any cents.
(c) The initial monthly CSRS component is computed by -
(3) Dividing the annual amount by 12; then
(4) Dropping any cents.
(e) A retiree who was covered under FERS for at least one month has a FERS component. If the amount of the FERS component as computed under paragraph (d) of this section is zero (because the CSRS component is equal to the monthly rate, leaving no balance for the FERS component), the FERS component is $1 per month. The retiree is due a full dollar increase on the FERS component with the next COLA. An employee with less than a month of FERS service has no FERS component and is not due any FERS COLA's.
(f) COLA's are determined by applying the appropriate increase to each component and rounding to the next lower dollar (each component must increase by at least one dollar if a COLA applies to each component) before adding them together for the new monthly amount payable.