5 U.S. Code § 8462 - Cost-of-living adjustments
(a) For the purpose of this section—
(1) the term “base quarter”, as used with respect to a year, means the calendar quarter ending on September 30 of such year;
(2) the price index for a base quarter is the arithmetical mean of such index for the 3 months comprising such quarter; and
(3) the term “percent change in the price index”, as used with respect to a year, means the percentage derived by—
(B) dividing the difference under subparagraph (A) by the price index referred to in subparagraph (A)(ii); and
(1) Except as provided in subsection (c), effective December 1 of any year in which an adjustment under this subsection is to be made, as determined under paragraph (2), each annuity payable from the Fund under this chapter (other than an annuity under section 8443) having a commencing date not later than such December 1 shall be adjusted as follows:
(A) If the percent change in the price index for the year does not exceed 3 percent, each annuity subject to adjustment under this subsection shall be increased by the lesser of—
(2) An adjustment under this subsection shall be made in a year only if the price index for the base quarter of such year exceeds the price index for the base quarter of the preceding year in which an adjustment under this subsection was made.
(c) 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:
(1) The first increase (if any) made under subsection (b) to an annuity which is payable from the Fund to an annuitant or survivor (other than a child under section 8443) whose annuity has not been increased under this subsection or subsection (b) shall be equal to the product (adjusted to the nearest one-tenth of 1 percent) of—
(B) the number of months (not to exceed 12 months, counting any portion of a month as a month)—
(2) Effective from its commencing date, an annuity payable from the Fund to an annuitant’s survivor (other than a widow or widower whose annuity is computed under section 8442 (g) or a child under section 8443) shall be increased by the total percentage by which the deceased annuitant’s annuity had been increased under this section during the period beginning on the date the deceased annuitant’s annuity commenced and ending on the date of the deceased annuitant’s death.
(A) An adjustment under subsection (b) for any year shall not be effective with respect to the annuity of an annuitant who is under 62 years of age as of the date on which such adjustment would otherwise first take effect.
(i) Except as provided in clause (ii), this paragraph applies only with respect to an annuitant under section 8412, 8413, or 8414.
(4) The first increase (if any) made under subsection (b) to an annuity which is payable from the Fund to a widow or widower whose annuity is computed under section 8442 (g) shall be equal to the product (adjusted to the nearest one-tenth of 1 percent) of—
(B) the number of months (not to exceed 12 months, counting any portion of a month as a month) since—
(i) the effective date of the adjustment last made under this section in the annuity of the annuitant on whose service on the widow’s or widower’s annuity is based; or
(d) The monthly installment of an 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.
Source(Added Pub. L. 99–335, title I, § 101(a),June 6, 1986, 100 Stat. 572; amended Pub. L. 99–556, title I, § 117(b),Oct. 27, 1986, 100 Stat. 3134.)
1986—Subsec. (b)(3). Pub. L. 99–556inserted provision relating to the computation of any amount under section 8443 (a)(2).
Delay in Cost-of-Living Adjustments During Fiscal Years 1994, 1995, and 1996
Any cost-of-living increase scheduled to take effect during fiscal year 1994, 1995, or 1996 under subsec. (b) of this section delayed until first day of third calendar month after date such increase would otherwise take effect, see section 11001 ofPub. L. 103–66, set out as a note under section 8340 of this title.