
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 10USC1401a]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                           PART II--PERSONNEL
 
                 CHAPTER 71--COMPUTATION OF RETIRED PAY
 
Sec. 1401a. Adjustment of retired pay and retainer pay to 
        reflect changes in Consumer Price Index
        
    (a) Prohibition on Recomputation To Reflect Increases in Basic 
Pay.--Unless otherwise specifically provided by law, the retired pay of 
a member or former member of an armed force may not be recomputed to 
reflect any increase in the rates of basic pay for members of the armed 
forces.
    (b) Cost-of-Living Adjustments Based on CPI Increases.--
        (1) Increase required.--Effective on December 1 of each year, 
    the Secretary of Defense shall increase the retired pay of members 
    and former members entitled to that pay in accordance with 
    paragraphs (2) and (3).
        (2) Percentage increase.--Except as otherwise provided in this 
    subsection, the Secretary shall increase the retired pay of each 
    member and former member by the percent (adjusted to the nearest 
    one-tenth of 1 percent) by which--
            (A) the price index for the base quarter of that year, 
        exceeds
            (B) the base index.

        (3) Reduced percentage for certain post-august 1, 1986 
    members.--If the percent determined under paragraph (2) is greater 
    than 1 percent, the Secretary shall increase the retired pay of each 
    member and former member who first became a member on or after 
    August 1, 1986, and has elected to receive a bonus under section 322 
    of title 37, by the difference between--
            (A) the percent determined under paragraph (2); and
            (B) 1 percent.

        (4) Special rule for paragraph (3).--If in any case in which an 
    increase in retired pay that would otherwise be made under paragraph 
    (3) is not made by reason of law (other than any provision of this 
    section), then (unless otherwise provided by law) when the next 
    increase in retired pay is made under this subsection, the increase 
    under paragraph (3) shall be carried out so as to achieve the same 
    net increase in retired pay under that paragraph that would have 
    been the case if that law had not been enacted.
        (5) Regulations.--Any increase in retired pay under this 
    subsection shall be made in accordance with regulations prescribed 
    by the Secretary of Defense.

    (c) First COLA Adjustment for Members With Retired Pay Computed 
Using Final Basic Pay.--
        (1) First adjustment with intervening increase in basic pay.--
    Notwithstanding subsection (b), if a person described in paragraph 
    (3) becomes entitled to retired pay based on rates of monthly basic 
    pay that became effective after the last day of the calendar quarter 
    of the base index, the retired pay of the member or former member 
    shall be increased on the effective date of the next adjustment of 
    retired pay under subsection (b) only by the percent (adjusted to 
    the nearest one-tenth of 1 percent) by which--
            (A) the price index for the base quarter of that year, 
        exceeds
            (B) the price index for the calendar quarter immediately 
        before the calendar quarter in which the rates of monthly basic 
        pay on which the retired pay is based became effective.

        (2) First adjustment with no intervening increase in basic 
    pay.--If a person described in paragraph (3) becomes entitled to 
    retired pay on or after the effective date of an adjustment in 
    retired pay under subsection (b) but before the effective date of 
    the next increase in the rates of monthly basic pay, the retired pay 
    of the member or former member shall be increased, effective on the 
    date the member becomes entitled to that pay, by the percent 
    (adjusted to the nearest one-tenth of 1 percent) by which--
            (A) the base index, exceeds
            (B) the price index for the calendar quarter immediately 
        before the calendar quarter in which the rates of monthly basic 
        pay on which the retired pay is based became effective.

        (3) Members covered.--Paragraphs (1) and (2) apply to a member 
    or former member of an armed force who first became a member of a 
    uniformed service before August 1, 1986, and whose retired pay base 
    is determined under section 1406 of this title.

    (d) First COLA Adjustment for Members With Retired Pay Computed 
Using High-Three.--Notwithstanding subsection (b), the retired pay of a 
member or former member of an armed force who first became a member of a 
uniformed service before August 1, 1986, and whose retired pay base is 
determined under section 1407 of this title shall be increased on the 
effective date of the first adjustment of retired pay under subsection 
(b) after the member or former member becomes entitled to retired pay by 
the percent (adjusted to the nearest one-tenth of 1 percent) equal to 
the difference between the percent by which--
        (1) the price index for the base quarter of that year, exceeds
        (2) the price index for the calendar quarter immediately before 
    the calendar quarter during which the member became entitled to 
    retired pay.

    (e) Pro Rating of Initial Adjustment.--Notwithstanding subsection 
(b), the retired pay of a member or former member of an armed force who 
first became a member of a uniformed service on or after August 1, 1986, 
shall be increased on the effective date of the first adjustment of 
retired pay under subsection (b) after the member or former member 
becomes entitled to retired pay by the percent (adjusted to the nearest 
one-tenth of 1 percent) equal to the difference between--
        (1) the percent by which--
            (A) the price index for the base quarter of that year, 
        exceeds
            (B) the price index for the calendar quarter immediately 
        before the calendar quarter during which the member became 
        entitled to retired pay; and

        (2) one-fourth of 1 percent for each calendar quarter from the 
    quarter described in paragraph (1)(B) to the quarter described in 
    paragraph (1)(A).

If in any case the percent described in paragraph (2) exceeds the 
percent determined under paragraph (1), such an increase shall not be 
made.
    (f) Prevention of Pay Inversions.--Notwithstanding any other 
provision of law, the monthly retired pay of a member or a former member 
of an armed force who initially became entitled to that pay on or after 
January 1, 1971, may not be less than the monthly retired pay to which 
he would be entitled if he had become entitled to retired pay at an 
earlier date based on the grade in which the member is retired, adjusted 
to reflect any applicable increases in such pay under this section. In 
computing the amount of retired pay to which such a member or former 
member would have been entitled on that earlier date, the computation 
shall be based on his grade, length of service, and the rate of basic 
pay applicable to him at that time, except that such computation may not 
be based on a rate of basic pay for a grade higher than the grade in 
which the member is retired. This subsection does not authorize any 
increase in the monthly retired pay to which a member was entitled for 
any period before October 7, 1975.
    (g) Definitions.--In this section:
        (1) The term ``price index'' means the Consumer Price Index (all 
    items, United States city average) published by the Bureau of Labor 
    Statistics.
        (2) The term ``base quarter'' means the calendar quarter ending 
    on September 30 of each year.
        (3) The term ``base index'' means the price index for the base 
    quarter for the most recent adjustment under subsection (b).
        (4) The term ``retired pay'' includes retainer pay.

    (h) Price Index for a Quarter.--For purposes of this section, the 
price index for a calendar quarter is the arithmetical mean of the price 
index for the three months comprising that quarter.

(Added Pub. L. 88-132, Sec. 5(g)(1), Oct. 2, 1963, 77 Stat. 213; amended 
Pub. L. 89-132, Sec. 5(b), Aug. 21, 1965, 79 Stat. 547; Pub. L. 90-207, 
Sec. 2(a)(1), Dec. 16, 1967, 81 Stat. 652; Pub. L. 91-179, Sec. 1, Dec. 
30, 1969, 83 Stat. 837; Pub. L. 94-106, title VIII, Sec. 806, Oct. 7, 
1975, 89 Stat. 538; Pub. L. 94-361, title VIII, Sec. 801(a), July 14, 
1976, 90 Stat. 929; Pub. L. 94-440, title XIII, Sec. 1306(d)(1), Oct. 1, 
1976, 90 Stat. 1462; Pub. L. 96-342, title VIII, Sec. 812(b)(1), Sept. 
8, 1980, 94 Stat. 1098; Pub. L. 98-94, title IX, Secs. 921(a)(1), (b), 
922(a)(2), Sept. 24, 1983, 97 Stat. 640, 641; Pub. L. 98-525, title XIV, 
Sec. 1405(26), Oct. 19, 1984, 98 Stat. 2623; Pub. L. 99-348, title I, 
Sec. 102, July 1, 1986, 100 Stat. 683; Pub. L. 100-180, div. A, title 
XII, Sec. 1231(21), Dec. 4, 1987, 101 Stat. 1161; Pub. L. 100-224, 
Sec. 1, Dec. 30, 1987, 101 Stat. 1536; Pub. L. 100-456, div. A, title 
VI, Sec. 622(a), Sept. 29, 1988, 102 Stat. 1983; Pub. L. 101-189, div. 
A, title VI, Sec. 651(b)(1), Nov. 29, 1989, 103 Stat. 1460; Pub. L. 103-
66, title II, Sec. 2001, Aug. 10, 1993, 107 Stat. 335; Pub. L. 103-160, 
div. A, title XI, Sec. 1182(e), Nov. 30, 1993, 107 Stat. 1773; Pub. L. 
103-335, title VIII, Sec. 8114A(b)(1), Sept. 30, 1994, 108 Stat. 2648; 
Pub. L. 103-337, div. A, title VI, Sec. 633(a), Oct. 5, 1994, 108 Stat. 
2787; Pub. L. 104-106, div. A, title VI, Sec. 631(a), (c), Feb. 10, 
1996, 110 Stat. 364, 365; Pub. L. 104-201, div. A, title VI, 
Secs. 631(a), 632(a), Sept. 23, 1996, 110 Stat. 2549; Pub. L. 106-65, 
div. A, title VI, Secs. 641(b), 643(b)(1), title X, Sec. 1066(a)(10), 
Oct. 5, 1999, 113 Stat. 662, 663, 771.)


                               Amendments

    1999--Subsec. (b)(1). Pub. L. 106-65, Sec. 643(b)(1)(A), substituted 
``Increase required'' for ``In general'' in heading.
    Subsec. (b)(2). Pub. L. 106-65, Sec. 1066(a)(10), struck out subpar. 
(A) designation and heading ``General rule'', redesignated cls. (i) and 
(ii) as subpars. (A) and (B), respectively, and realigned their margins, 
and struck out former subpars. (B) and (C) which read as follows:
    ``(B) Special rule for fiscal year 1996.--In the case of the 
increase in retired pay that, pursuant to paragraph (1), becomes 
effective on December 1, 1995, the initial month for which such increase 
is payable as part of such retired pay shall (notwithstanding such 
December 1 effective date) be March 1996.
    ``(C) Inapplicability to disability retirees.--Subparagraph (B) does 
not apply with respect to the retired pay of a member retired under 
chapter 61 of this title.''
    Pub. L. 106-65, Sec. 643(b)(1)(B), substituted ``Percentage 
increase'' for ``Pre-august 1, 1986 members'' in heading.
    Pub. L. 106-65, Sec. 641(b)(1), substituted ``Except as otherwise 
provided in this subsection, the Secretary shall increase the retired 
pay of each member and former member'' for ``The Secretary shall 
increase the retired pay of each member and former member who first 
became a member of a uniformed service before August 1, 1986,''.
    Subsec. (b)(3). Pub. L. 106-65, Sec. 643(b)(1)(C), substituted 
``Reduced percentage for certain post-august 1, 1986 members'' for 
``Post-august 1, 1986 members'' in heading.
    Pub. L. 106-65, Sec. 641(b)(2), inserted ``and has elected to 
receive a bonus under section 322 of title 37,'' after ``August 1, 
1986,''.
    1996--Subsec. (b)(2)(B). Pub. L. 104-201, Sec. 631(a), substituted 
``Special rule for fiscal year 1996'' for ``Special rules for fiscal 
years 1996 and 1998'' as subpar. heading, struck out cl. (i) designation 
and heading ``Fiscal year 1996'' before ``In the case of'', and struck 
out cl. (ii) which read as follows: ``Fiscal year 1998.--In the case of 
the increase in retired pay that, pursuant to paragraph (1), becomes 
effective on December 1, 1997, the initial month for which such increase 
is payable as part of such retired pay shall (notwithstanding such 
December 1 effective date) be September 1998.''
    Pub. L. 104-106, Sec. 631(c), repealed Pub. L. 103-335, 
Sec. 8114A(b)(1). See 1994 Amendment note below.
    Pub. L. 104-106, Sec. 631(a), amended subpar. (B) generally. Prior 
to amendment, subpar. (B) read as follows: ``Special rules for fiscal 
years 1994 through 1998.--
        ``(i) Fiscal year 1994.--In the case of an increase in retired 
    pay that, pursuant to paragraph (1), becomes effective on December 
    1, 1993, the initial month for which such increase is payable as 
    part of such retired pay shall (notwithstanding such December 1 
    effective date) be March 1994.
        ``(ii) Fiscal years 1995 through 1998.--In the case of an 
    increase in retired pay that, pursuant to paragraph (1), becomes 
    effective on December 1 of 1994, 1995, 1996, or 1997, the initial 
    month for which such increase is payable as part of such retired pay 
    shall (notwithstanding such December 1 effective date) be September 
    of the following year.''
    Subsec. (c). Pub. L. 104-201, Sec. 632(a), added subsec. (c) and 
struck out former subsec. (c) which read as follows: ``Rule for First 
Adjustment After Retirement With Intervening Increase in Basic Pay.--
Notwithstanding subsection (b), if a member or former member of an armed 
force who first became a member of a uniformed service before August 1, 
1986, becomes entitled to retired pay based on rates of monthly basic 
pay that became effective after the last day of the calendar quarter of 
the base index, the retired pay of the member or former member shall be 
increased on the effective date of the next adjustment of retired pay 
under subsection (b) only by the percent (adjusted to the nearest one-
tenth of 1 percent) by which--
        ``(1) the price index for the base quarter of that year, exceeds
        ``(2) the price index for the calendar quarter immediately 
    before the calendar quarter in which the rates of monthly basic pay 
    on which the retired pay is based became effective.''
    Subsec. (d). Pub. L. 104-201, Sec. 632(a), added subsec. (d) and 
struck out former subsec. (d) which read as follows: ``Rule for First 
Adjustment After Retirement With No Intervening Increase in Basic Pay.--
If a member or former member of an armed force who first became a member 
of a uniformed service before August 1, 1986, becomes entitled to 
retired pay on or after the effective date of an adjustment in retired 
pay under subsection (b) but before the effective date of the next 
increase in the rates of monthly basic pay, the retired pay of the 
member or former member shall be increased, effective on the date the 
member becomes entitled to that pay, by the percent (adjusted to the 
nearest one-tenth of 1 percent) by which--
        ``(1) the base index, exceeds
        ``(2) the price index for the calendar quarter immediately 
    before the calendar quarter in which the rates of monthly basic pay 
    on which the retired pay is based became effective.''
    1994--Subsec. (b)(2)(B). Pub. L. 103-335, Sec. 8114A(b)(1), which 
directed substituting, in heading, ``through 1996'' for ``through 1998'' 
and substituting, in cl. (ii), ``and 1996'' for ``through 1998'', ``of 
1994 or 1995'' for ``of 1994, 1995, 1996, or 1997'', and ``March'' for 
``September'', was repealed by Pub. L. 104-106, Sec. 631(c).
    Subsec. (f). Pub. L. 103-337 inserted ``based on the grade in which 
the member is retired'' after ``at an earlier date'' in first sentence 
and ``, except that such computation may not be based on a rate of basic 
pay for a grade higher than the grade in which the member is retired'' 
before period at end of second sentence and struck out after second 
sentence ``However, in the case of a member who, after initially 
becoming eligible for retired pay, is reduced in grade pursuant to a 
sentence of a court-martial, such computation may not be based on a 
grade higher than the grade in which the member is retired.''
    1993--Subsec. (b)(2). Pub. L. 103-160, Sec. 1182(e)(1), amended par. 
(2) generally. Prior to amendment, par. (2) read as follows: ``Except as 
provided in paragraph (6), the Secretary shall increase the retired pay 
of each member and former member who first became a member of a 
uniformed service before August 1, 1986, by the percent (adjusted to the 
nearest one-tenth of 1 percent) by which--
        ``(A) the price index for the base quarter of that year, exceeds
        ``(B) the base index.''
    Pub. L. 103-66, Sec. 2001(1), substituted ``Except as provided in 
paragraph (6), the Secretary'' for ``The Secretary''.
    Subsec. (b)(6). Pub. L. 103-160, Sec. 1182(e)(2), struck out par. 
(6) which read as follows: ``Special rules for paragraph (2) for fiscal 
years 1994 through 1998.--
        ``(A) Fiscal year 1994.--In the case of an increase in the 
    retired pay of a member or former member referred to in paragraph 
    (2) that, pursuant to paragraph (1), becomes effective on December 
    1, 1993, the initial month for which such increase is payable as 
    part of such retired pay shall (notwithstanding such December 1 
    effective date) be March 1994.
        ``(B) Fiscal years 1995 through 1998.--In the case of an 
    increase in retired pay of a member or former member referred to in 
    paragraph (2) that, pursuant to paragraph (1), becomes effective on 
    December 1 of 1994, 1995, 1996, or 1997, the initial month for which 
    such increase is payable as part of such retired pay shall 
    (notwithstanding such December 1 effective date) be September of the 
    following year.
        ``(C) Inapplicability to disability retirees.--Subparagraphs (A) 
    and (B) do not apply with respect to the retired pay of a member 
    retired under chapter 61 of this title.''
    Pub. L. 103-66, Sec. 2001(2), added par. (6).
    1989--Subsec. (b)(3). Pub. L. 101-189, Sec. 651(b)(1)(A), inserted 
``and former member'' after first reference to ``member''.
    Subsec. (e). Pub. L. 101-189, Sec. 651(b)(1)(B), inserted ``or 
former member'' after first and third reference to ``member''.
    Subsec. (f). Pub. L. 101-189, Sec. 651(b)(1)(C), inserted ``or 
former member'' after ``member'' in second sentence.
    1988--Subsec. (f). Pub. L. 100-456 inserted after second sentence 
``However, in the case of a member who, after initially becoming 
eligible for retired pay, is reduced in grade pursuant to a sentence of 
a court-martial, such computation may not be based on a grade higher 
than the grade in which the member is retired.''
    1987--Subsec. (a). Pub. L. 100-180 struck out ``pay'' after ``the 
retired pay''.
    Subsec. (b)(4), (5). Pub. L. 100-224, Sec. 1(a), added par. (4) and 
redesignated former par. (4) as (5).
    Subsec. (e). Pub. L. 100-224, Sec. 1(b), substituted ``by the 
percent (adjusted to the nearest one-tenth of 1 percent) equal to the 
difference between--
        ``(1) the percent by which--
            ``(A) the price index for the base quarter of that year, 
        exceeds
            ``(B) the price index for the calendar quarter immediately 
        before the calendar quarter during which the member became 
        entitled to retired pay; and
        ``(2) one-fourth of 1 percent for each calendar quarter from the 
    quarter described in paragraph (1)(B) to the quarter described in 
    paragraph (1)(A).
If in any case the percent described in paragraph (2) exceeds the 
percent determined under paragraph (1), such an increase shall not be 
made.'' for ``only by the percent (adjusted to the nearest one-tenth of 
1 percent) by which--
        ``(1) the price index for the base quarter of that year, exceeds
        ``(2) the price index for the calendar quarter immediately 
    before the calendar quarter in which the member became entitled to 
    retired pay.''
    1986--Subsec. (a). Pub. L. 99-348, Sec. 102(b)(1), (c)(1), inserted 
heading, struck out ``or retainer'' after ``retired pay'', and struck 
out sentence defining ``Index'' in this section as meaning the Consumer 
Price Index (all items, United States city average) published by the 
Bureau of Labor Statistics.
    Subsecs. (b) to (d). Pub. L. 99-348, Sec. 102(a), added subsecs. (b) 
to (d) and struck out former subsecs. (b) to (d) which read as follows:
    ``(b) Each time that an increase is made under section 8340(b) of 
title 5 in annuities paid under subchapter III of chapter 83 of such 
title, the Secretary of Defense shall at the same time increase the 
retired and retainer pay of members and former members of the armed 
forces by the same percent as the percentage by which annuities are 
increased under such section.
    ``(c) Notwithstanding subsection (b), if a member or former member 
of an armed force becomes entitled to retired pay or retainer pay based 
on rates of monthly basic pay prescribed by section 203 of title 37 that 
became effective after the last day of the month of the base index, his 
retired pay or retainer pay shall be increased on the effective date of 
the next adjustment of retired pay and retainer pay under subsection (b) 
only by the percent (adjusted to the nearest one-tenth of 1 percent) 
that the new base index exceeds the index for the calendar month 
immediately before that in which the rates of monthly basic pay on which 
his retired pay or retainer pay is based became effective.
    ``(d) If a member or former member of an armed force becomes 
entitled to retired pay or retainer pay on or after the effective date 
of an adjustment of retired pay and retainer pay under subsection (b) 
but before the effective date of the next increase in the rates of 
monthly basic pay prescribed by section 203 of title 37, his retired pay 
or retainer pay shall be increased, effective on the date he becomes 
entitled to that pay, by the percent (adjusted to the nearest one-tenth 
of 1 percent) that the base index exceeds the index for the calendar 
month immediately before that in which the rates of monthly basic pay on 
which his retired pay or retainer pay is based became effective.''
    Subsec. (e). Pub. L. 99-348, Sec. 102(a), added subsec. (e).
    Subsec. (f). Pub. L. 99-348, Sec. 102(c)(2), inserted heading and 
struck out ``or retainer'' after ``retired'' wherever appearing.
    Subsecs. (g), (h). Pub. L. 99-348, Sec. 102(b)(2), added subsecs. 
(g) and (h) and struck out former subsec. (g) which provided that the 
retired or retainer pay of a member or former member of an armed force 
as adjusted under this section, if not a multiple of $1, would be 
rounded to the next lower multiple of $1.
    1984--Subsec. (f). Pub. L. 98-525 substituted ``before October 7, 
1975'' for ``prior to the effective date of this subsection''.
    1983--Subsec. (e). Pub. L. 98-94, Sec. 921(a)(1), struck out subsec. 
(e) which provided that: ``Notwithstanding subsections (c) and (d), the 
adjusted retired pay or retainer pay of a member or former member of an 
armed force retired on or after October 1, 1967, may not be less than it 
would have been had he become entitled to retired pay or retainer pay 
based on the same pay grade, years of service for pay, years of service 
for retired or retainer pay purposes, and percent of disability, if any, 
on the day before the effective date of the rates of monthly basic pay 
on which his retired pay or retainer pay is based.''
    Subsec. (f). Pub. L. 98-94, Sec. 921(b), struck out ``, subject to 
subsection (e) of this section,'' after ``the computation shall''.
    Subsec. (g). Pub. L. 98-94, Sec. 922(a)(2), added subsec. (g).
    1980--Subsec. (b). Pub. L. 96-342 substituted provisions directing 
the Secretary of Defense to increase the retired and retainer pay of 
members and former members of the armed forces each time that an 
increase is made under section 8340(b) of title 5 in annuities paid 
under subchapter III of chapter 83 of title 5, with such increase to be 
by the same percent as the percentage by which the annuities are 
increased for provisions under which the Secretary of Defense had been 
authorized and directed to increase the retired pay and retainer pay of 
members and former members of the armed forces on March 1 and September 
1 depending upon determinations which the Secretary was directed to make 
on January 1 and July 1 of each year with regards to the percentage 
change in the index published for June or December of the previous year.
    1976--Subsec. (b). Pub. L. 94-440 substituted provisions that 
Secretary of Defense shall determine the percent change in the index on 
Jan. 1 and July 1 of each year and effective Mar. 1 and Sept. 1, retired 
and retainer pay shall be increased by the computed percent change 
adjusted to the nearest \1/10\ of 1 percent, for provisions that the 
Secretary of Defense shall determine on a monthly basis the percent by 
which the index has increased over that used as a basis for the most 
recent adjustment of retired and retainer pay and if Secretary 
determines for 3 consecutive months that the amount of increase is at 
least 3 percent over the base index, retired and retainer pay shall be 
increased by adding 1 percent and the highest percent increase in the 
index during those months adjusted to the nearest \1/10\ of 1 percent.
    Pub. L. 94-361 struck out ``the per centum obtained by adding 1 per 
centum and'' before ``the highest per centum of increase in the index''.
    1975--Subsec. (f). Pub. L. 94-106 added subsec. (f).
    1969--Subsec. (b). Pub. L. 91-179 provided for a 1 percent addition 
in computing increases in retired and retainer pay of present and former 
members of the armed forces, whenever the Secretary made such 
adjustments to effect increases in the consumer index over the base 
index.
    1967--Subsec. (a). Pub. L. 90-207 substituted ``may not be 
recomputed'' for ``shall not be recomputed'', struck out ``if that 
increase becomes effective after the effective date of this section'' 
after ``armed forces'' and inserted sentence defining ``Index''.
    Subsec. (b). Pub. L. 90-207 revised subsec. (b) generally and, among 
other changes, substituted provisions requiring the Secretary of Defense 
to determine monthly the percent by which the index has increased over 
that used as the basis for the most recent adjustment of retired and 
retainer pay under this subsection for provisions which required the 
Secretary of Defense to determine the per centum that the index for each 
calendar month after the calendar month immediately preceding the 
effective date of Pub. L. 89-132 has increased over the base index (that 
for the calendar month immediately preceding the effective date of Pub. 
L. 89-132 or, if later, that used as the basis for the most recent 
adjustment of retired and retainer pay under this subsection).
    Subsecs. (c) to (e). Pub. L. 90-207 added subsecs. (c) to (e).
    1965--Subsec. (b). Pub. L. 89-132 substituted provisions requiring 
the Secretary of Defense to determine the per centum for each calendar 
month that the Consumer Price Index has increased over the base Consumer 
Price Index, and if the index has shown an increase of at least 3 per 
centum over the base index for three consecutive calendar months to 
increase the retired or retainer pay by the highest per centum of 
increase in the index, for provisions which required a determination of 
the increase over the preceding calendar year and permitted an increase 
in the retired or retainer pay if the index advanced 3 per centum or 
more for a full calendar year.


                    Effective Date of 1999 Amendment

    Pub. L. 106-65, div. A, title VI, Sec. 644, Oct. 5, 1999, 113 Stat. 
664, provided that: ``The amendments made by sections 641, 642, and 643 
[enacting section 322 of Title 37, Pay and Allowances of the Uniformed 
Services, and amending this section and sections 1409, 1410, 1451, and 
1452 of this title] shall take effect on October 1, 1999.''


                    Effective Date of 1996 Amendment

    Section 632(b) of Pub. L. 104-201 provided that: ``The amendment 
made by subsection (a) [amending this section] shall apply only to 
adjustments of retired and retainer pay effective after the date of the 
enactment of this Act [Sept. 23, 1996].''


                    Effective Date of 1994 Amendment

    Section 633(b) of Pub. L. 103-337 provided that: ``The amendments 
made by subsection (a) [amending this section] shall apply with respect 
to the computation of the retired pay of a member of the Armed Forces 
who retires on or after the date of the enactment of this Act [Oct. 5, 
1994].''


                    Effective Date of 1988 Amendment

    Section 622(b) of Pub. L. 100-456 provided that: ``The amendment 
made by subsection (a) [amending this section] shall take effect on the 
first day of the first month that begins after the date of the enactment 
of this Act [Sept. 29, 1988] and shall apply to the computation of the 
retired or retainer pay of members who initially become entitled to such 
pay on or after such effective date.''


                    Effective Date of 1983 Amendment

    Section 921(a)(2) of Pub. L. 98-94 provided that:
    ``(A) Notwithstanding the repeal of such subsection [subsec. (e) of 
this section], the provisions of such subsection shall apply in the case 
of any member or former member of the Armed Forces eligible to retire on 
the date of the enactment of this Act [Sept. 24, 1983] for a period of 
three years after such date in the same manner such provisions would 
have applied had they not been repealed.
    ``(B) The amount of retired or retainer pay of any member or former 
member of the Armed Forces who was eligible to retire on the date of the 
enactment of this Act [Sept. 24, 1983] and who becomes entitled to such 
pay at any time after the end of the three-year period beginning on the 
date of the enactment of this Act may not be less than it would have 
been had he become entitled to retired or retainer pay on the day before 
the end of such three-year period.''
    Amendment by section 922 of Pub. L. 98-94 effective Oct. 1, 1983, 
see section 922(e) of Pub. L. 98-94, set out as a note under section 
1401 of this title.


                    Effective Date of 1980 Amendment

    Section 812(b)(1) of Pub. L. 96-342, set out below, provided that 
the amendment made by that section is effective Aug. 31, 1981, but 
subject to certain conditions.


                    Effective Date of 1976 Amendment

    Section 1306(d)(2) of Pub. L. 94-440 provided that: ``The amendment 
made by subsection (1) [amending this section] shall apply to any 
increase in retired pay or retainer pay after the date of enactment of 
this Act [Oct. 1, 1976], except that with respect to the first date 
after the date of enactment of this Act on which the Secretary of 
Defense is to determine a percent change, such percent change shall be 
determined by computing the change in the index published for the month 
immediately preceding such first date over the index for the last month 
preceding the date of enactment of this Act used as the basis for the 
most recent adjustment of retired pay and retainer pay under section 
1401a(b) of title 10, United States Code [subsec. (b) of this section], 
as in effect immediately prior to the date of enactment of this Act 
[Oct. 1, 1976].''


                    Effective Date of 1969 Amendment

    Section 2 of Pub. L. 91-179 provided that: ``The provisions of this 
Act [amending this section] become effective on October 31, 1969.''


                    Effective Date of 1967 Amendment

    Amendment by Pub. L. 90-207 effective Oct. 1, 1967, see section 7 of 
Pub. L. 90-207, set out as a note under section 203 of Title 37, Pay and 
Allowances of the Uniformed Services.


                    Effective Date of 1965 Amendment

    Amendment by Pub. L. 89-132 effective Sept. 1, 1965, see section 10 
of Pub. L. 89-132, set out as a note under section 203 of Title 37, Pay 
and Allowances of the Uniformed Services.


                             Effective Date

    Section effective Oct. 1, 1963, see section 14 of Pub. L. 88-132, 
set out as an Effective Date of 1963 Amendment note under section 201 of 
Title 37, Pay and Allowances of the Uniformed Services.


            Contingent Alternative Date for Fiscal Year 1998

    Section 631(b) of Pub. L. 104-106 provided that if a civil service 
retiree COLA that becomes effective during fiscal year 1998 becomes 
effective on a date other than the date on which a military retiree COLA 
during that fiscal year is specified to become effective under subsec. 
(b)(2)(B) of this section, then the increase in military retired and 
retainer pay would become payable as part of such retired and retainer 
pay effective on the same date on which such civil service retiree COLA 
was to become effective, prior to repeal by Pub. L. 104-201, div. A, 
title VI, Sec. 631(b), Sept. 23, 1996, 110 Stat. 2549.


   Elimination of Disparity Between Effective Dates for Military and 
    Civilian Retiree Cost-of-Living Adjustments for Fiscal Year 1995

    Section 631 of Pub. L. 103-337 provided that:
    ``(a) In General.--The fiscal year 1995 increase in military retired 
pay shall (notwithstanding subparagraph (B) of section 1401a(b)(2) of 
title 10, United States Code) first be payable as part of such retired 
pay for the month of March 1995.
    ``(b) Definitions.--For the purposes of subsection (a):
        ``(1) The term `fiscal year 1995 increase in military retired 
    pay' means the increase in retired pay that, pursuant to paragraph 
    (1) of section 1401a(b) of title 10, United States Code, becomes 
    effective on December 1, 1994.
        ``(2) The term `retired pay' includes retainer pay.
    ``(c) Limitation.--Subsection (a) shall be effective only if there 
is appropriated to the Department of Defense Military Retirement Fund 
(in an Act making appropriations for the Department of Defense for 
fiscal year 1995 that is enacted before March 1, 1995) such amount as is 
necessary to offset increased outlays to be made from that fund during 
fiscal year 1995 by reason of the provisions of subsection (a).
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated for fiscal year 1995 to the Department of Defense Military 
Retirement Fund the sum of $376,000,000 to offset increased outlays to 
be made from that fund during fiscal year 1995 by reason of the 
provisions of subsection (a).''


Sense of Congress on Equal Treatment of Effective Dates for Future Cost-
        of-Living Adjustments for Military and Civilian Retirees

    Section 632 of Pub. L. 103-337 provided that:
    ``(a) Findings.--Congress makes the following findings:
        ``(1) Congress, in the Omnibus Budget Reconciliation Act of 1993 
    [Pub. L. 103-66, see Tables for classification], changed the 
    effective dates for future cost-of-living adjustments for military 
    retired pay and for Federal civilian retirement annuities, which 
    (before that Act) were provided by law to be made effective on 
    December 1 each year.
        ``(2) The timing, and the percentage of increase, of military 
    and Federal civilian retirees' cost-of-living adjustments have been 
    linked for decades.
        ``(3) The effect of the enactment of the Omnibus Budget 
    Reconciliation Act of 1993 was to abandon the longstanding 
    congressional practice of treating military and Federal civilian 
    retirees identically in matters related to cost-of-living 
    adjustments.
    ``(b) Sense of Congress.--In light of the findings in subsection 
(a), it is the sense of Congress that--
        ``(1) as a matter of simple equity and fairness, it is 
    imperative that cost-of-living adjustments in retirement benefits 
    for military and Federal civilian retirees be returned to an 
    identical schedule as soon as possible, but not later than January 
    1, 1999;
        ``(2) if after October 1, 1998, there is, by law, a difference 
    between the date on which a cost-of-living adjustment for Federal 
    civilian retirees takes effect and the date on which a cost-of-
    living adjustment for military retirees takes effect, then the 
    difference in those effective dates should be eliminated by 
    requiring that cost-of-living adjustments for both classes of 
    retirees become effective on the earlier of the two dates; and
        ``(3) if after October 1, 1998, there is, by law, a difference 
    between the first month for which a cost-of-living adjustment for 
    civilian retirees is payable and the first month for which a cost-
    of-living adjustment for military retirees is payable, then the 
    difference in the months for which those adjustments are first 
    payable should be eliminated by requiring that the cost-of-living 
    adjustments for both classes of retirees first become payable for 
    the earlier of the two months.''


   Waiver of Administrative Time-in-Grade Requirements To Prevent Pay 
         Inversions in Retired Pay of Certain Military Retirees

    Section 634 of Pub. L. 103-337 provided that:
    ``(a) Authority.--The Secretary concerned may, for purposes of the 
computation under section 1401a(f) of title 10, United States Code, of 
the retired pay of military retirees described in subsection (b), waive 
any administrative time-in-grade regulation (as described in subsection 
(d)) that would otherwise apply to such computation. Any such waiver may 
be made retroactive, in the case of any such retiree, to the date on 
which that retiree initially became entitled to retired pay.
    ``(b) Covered Retirees.--This section applies to any military 
retiree--
        ``(1) who initially became entitled to retired pay on or after 
    January 1, 1971, and before the date of the enactment of this Act 
    [Oct. 5, 1994];
        ``(2) whose retired pay, by reason of the provisions of section 
    1401a(f) of title 10, United States Code (the so-called `Tower 
    amendment'), was initially computed as an amount greater than would 
    have been the case but for that section; and
        ``(3) who, as of the earlier computation date applicable to that 
    retiree--
            ``(A) in the case of an individual retired in an enlisted 
        grade, had served in the grade in which the retiree retired for 
        a period that was less than the period prescribed by the 
        applicable administrative time-in-grade requirement described in 
        subsection (d); and
            ``(B) in the case of an individual retired in an officer 
        grade--
                ``(i) was subject to an administrative time-in-grade 
            requirement described in subsection (d) that established a 
            time-in-grade requirement that was longer than the statutory 
            time-in-grade requirement applicable to that member; and
                ``(ii) had served in the grade in which the retiree 
            retired for a period that was less than the period 
            prescribed by such administrative time-in-grade requirement 
            but not less than the statutory time-in-grade requirement 
            applicable to that member.
    ``(c) Earlier Computation Date.--For purposes of subsection (b)(3), 
the earlier computation date applicable to a military retiree is the 
date that (under such section 1401a(f) as in effect on the date of the 
member's retirement) was the `earlier date' that was used as the basis 
for the computation of the retiree's retired pay.
    ``(d) Regulations Subject to Waiver.--A regulation that may be 
waived under subsection (a) is any regulation (not required by law) that 
establishes a minimum period of time that a member of the Armed Forces 
must have served in a grade on active duty in order to be eligible to 
retire in that grade.
    ``(e) Scope of Waiver Authority.--The Secretary concerned may 
exercise the authority provided in subsection (a) in the case of an 
individual military retiree or for any group of military retirees.
    ``(f) Military Retiree Defined.--For purposes of this section, the 
term `military retiree' means a member or former member of the Armed 
Forces who is entitled to retired pay.
    ``(g) Secretary Concerned.--For purposes of this section, the term 
`Secretary concerned' has the meaning given such term in section 101 of 
title 10, United States Code.''


    Fiscal Year 1995 Cost-of-Living Adjustments for Military Retirees

    Pub. L. 103-335, title VIII, Sec. 8114A, Sept. 30, 1994, 108 Stat. 
2648, as amended by Pub. L. 104-106, div. A, title VI, Sec. 631(c), Feb. 
10, 1996, 110 Stat. 365, provided that:
    ``(a) Fiscal Year 1995 Cost-of-Living Adjustment for Military 
Retirees.--(1) The fiscal year 1995 increase in military retired pay 
shall (notwithstanding subparagraph (B) of section 1401a(b)(2) of title 
10, United States Code) first be payable as part of such retired pay for 
the month of March 1995.
    ``(2) For the purposes of subsection (a):
        ``(A) The term `fiscal year 1995 increase in military retired 
    pay' means the increase in retired pay that, pursuant to paragraph 
    (1) of section 1401a(b) of title 10, United States Code, becomes 
    effective on December 1, 1994.
        ``(B) The term `retired pay' includes retainer pay.
    ``(b) [Repealed. Pub. L. 104-106, div. A, title VI, Sec. 631(c), 
Feb. 10, 1996, 110 Stat. 365.]''


      Contingent Once-a-Year Adjustment of Retired and Retainer Pay

    Pub. L. 96-342, title VIII, Sec. 812, Sept. 8, 1980, 94 Stat. 1098, 
as amended by Pub. L. 97-35, title II, Sec. 211(b), Aug. 13, 1981, 95 
Stat. 383, provided that:
    ``(a)(1) The increase in the retired and retainer pay of members and 
former members of the uniformed services which but for this section 
would be made effective September 1, 1980, under the provisions of 
paragraph (2)(B) of section 1401a(b) of title 10, United States Code, 
shall not be made.
    ``(2)(A) In making the determination required by the provisions of 
paragraph (1)(A) of section 1401a(b) of title 10, United States Code, to 
be made on January 1, 1981, or within a reasonable time thereafter, the 
Secretary of Defense shall determine the percent change in the index (as 
such term is defined in section 1401a(a) of title 10, United States 
Code) published for December 1980 over the index published for December 
1979 (rather than over the index published for June 1980).
    ``(B) The increase in the retired and retainer pay of members and 
former members of the uniformed services to be made effective March 1, 
1981, under the provisions of paragraph (2)(A) of such section shall, in 
lieu of the increase prescribed by such paragraph, be the percent change 
computed under subparagraph (A), adjusted to the nearest \1/10\ of one 
percent.
    ``(3) The President shall by Executive order provide for only one 
cost-of-living adjustment in the annuities paid under the Central 
Intelligence Agency [Retirement] Act of 1964 for Certain Employees (50 
U.S.C. 403 note) during the period beginning on September 1, 1980, and 
ending on August 31, 1981. Such adjustment shall be effective March 1, 
1981, and shall be made in the same manner and percentage as the 
adjustment provided for in paragraphs (1) and (2) for the retired and 
retainer pay of members and former members of the uniformed services.
    ``(4) Paragraphs (1), (2), and (3) shall not take effect unless 
similar legislation is enacted which provides for only one cost-of-
living increase in annuities paid under subchapter III of chapter 83 of 
title 5, United States Code, during the period beginning on September 1, 
1980, and ending on August 31, 1981.
    ``(b)(1) Effective August 31, 1981, but subject to paragraph (2), 
section 1401a(b), of title 10, United States Code, relating to 
adjustment of retired pay and retainer pay to reflect changes in the 
Consumer Price Index, is amended to read as follows:
        `(b) Each time that an increase is made under section 8340(b) of 
    title 5 in annuities paid under subchapter III of chapter 83 of such 
    title, the Secretary of Defense shall at the same time increase the 
    retired and retainer pay of members and former members of the armed 
    forces by the same percent as the percentage by which annuities are 
    increased under such section.'.
    ``(2) The amendment made by paragraph (1) shall not take effect 
unless legislation is enacted which provides for the adjustment of 
annuities paid under subchapter III of chapter 83 of title 5, United 
States Code, on a once-a-year basis. In the event such legislation is 
enacted, such amendment shall become effective with respect to 
adjustments in the retired pay and retainer pay of members and former 
members of the uniformed services at the same time that the legislation 
providing for such a once-a-year adjustment of annuities paid under 
subchapter III of chapter 83 of title 5, United States Code, becomes 
effective.
    ``(3) If legislation described in paragraph (2) is enacted to 
provide for the adjustment of annuities paid under subchapter III of 
chapter 83 of title 5, United States Code, on a once-a-year basis, the 
President shall exercise the authority vested in him under section 292 
of the Central Intelligence Agency [Retirement] Act of 1964 for Certain 
Employees (50 U.S.C. 403 note) to provide for cost-of-living adjustments 
in the annuities paid under such Act on an identical basis.
    ``(4) If at the time the first adjustment in retired and retainer 
pay is made under section 1401a(b) of title 10, United States Code, as 
amended by paragraph (1) of this subsection, the period upon which the 
most recent adjustment in such retired and retainer pay was computed is 
not identical to the period upon which the most recent adjustment in 
annuities under subchapter III of chapter 83 of title 5, United States 
Code, was computed, then the percentage increase to be made under such 
section 1401a(b) at the time of the first such adjustment shall be 
computed in the same manner as the percentage increase made at the same 
time in annuities under subchapter III of chapter 83 of title 5, United 
States Code, is computed, but shall be based on the period beginning on 
the last day of the period upon which the most recent adjustment in such 
retired and retainer pay was computed and ending on the last day of the 
period upon which the adjustment being made at the same time in 
annuities under such subchapter III is computed. The President shall by 
Executive order provide for a similar computation of the adjustment in 
annuities paid under the Central Intelligence Agency [Retirement] Act of 
1964 for Certain Employees (50 U.S.C. 403 note) which is made at the 
same time as the increase in retired and retainer pay to which the 
preceeding [preceding] sentence is applicable.
    ``(c) For the purposes of this section, the term `uniformed 
services' means--
        ``(1) the Armed Forces; and
        ``(2) the commissioned corps of the National Oceanic and 
    Atmospheric Administration and of the Public Health Service.''


   Computation of Retired Pay of Sergeant Majors of Marine Corps Who 
              Completed Service Prior to December 16, 1967

    Pub. L. 95-581, Nov. 2, 1978, 92 Stat. 2478, provided: ``That (a) 
the retired pay of any individual who served as sergeant major of the 
Marine Corps and who completed such service before December 16, 1967, 
shall be computed based upon a rate of basic pay of the sum of (1) the 
highest rate of basic pay to which such individual was entitled while so 
serving, and (2) $150.
    ``(b) For the purpose of computing any adjustment under section 
1401a of title 10, United States Code, in the retired pay of any 
individual whose retired pay is affected by subsection (a), the rate of 
basic pay provided under such subsection for the purpose of computing 
the retired pay of such individual shall be considered to have been the 
rate of basic pay applicable to such individual at the time of his 
retirement, and any adjustment under such section 1401a in the retired 
pay of such individual before September 30, 1978, shall be readjusted to 
reflect such rate of basic pay.
    ``Sec. 2. (a) Any change in the retired pay of any individual by 
reason of the enactment of this Act shall be effective for months 
beginning after September 30, 1978.
    ``(b) The enactment of this Act shall not reduce the retired pay of 
any individual.''
    [The Central Intelligence Agency Retirement Act of 1964 for Certain 
Employees, referred to in Pub. L. 96-342, set out above, is Pub. L. 88-
643, Oct. 13, 1964, 78 Stat. 1043, which was revised generally by Pub. 
L. 102-496, title VIII, Sec. 802, Oct. 24, 1992, 106 Stat. 3196, is 
known as the Central Intelligence Agency Retirement Act and is 
classified generally to chapter 38 (Sec. 2001 et seq.) of Title 50, War 
and National Defense.]


Cost-of-Living Adjustment of Retired Pay or Retainer Pay of Members and 
  Former Members of Armed Forces and Commissioned Officers of National 
   Oceanic and Atmospheric Administration and Public Health Service; 
                    Effective Date of 1976 Amendment

    Section 801(c) of Pub. L. 94-361 provided that:
    ``(1) The amendments made by subsections (a) [to subsec. (b) of this 
section] and (b) [to provisions formerly set out as a note under section 
403 of title 50] shall not become effective unless legislation is 
enacted repealing the so-called 1 per centum add-on provision applicable 
to the cost-of-living adjustment of annuities paid under chapter 83 of 
title 5, United States Code. In the event such legislation is enacted, 
such amendments shall become effective with respect to the cost-of-
living adjustment of the retired pay and retainer pay of members and 
former members of the Armed Forces and the cost-of-living adjustment of 
annuities paid under the Central Intelligence Agency [Retirement] Act of 
1964 for Certain Employees at the same time the repeal of such 1 per 
centum add-on provision becomes effective with respect to such cost-of-
living adjustment of annuities paid under such chapter 83.
    ``(2) If any change other than the repeal of the so-called 1 per 
centum add-on provision referred to in paragraph (1) is made in the 
method of computing the cost-of-living adjustment of annuities paid 
under chapter 83 of title 5, United States Code, the President shall 
make the same change in the cost-of-living adjustment of retired pay and 
retainer pay of members and former members of the Armed Forces and the 
cost-of-living adjustment of annuities paid under the Central 
Intelligence Agency [Retirement] Act of 1964 for Certain Employees. Any 
change made under this paragraph shall have the same effective date as 
the effective date applicable to such change made in annuities under 
chapter 83 of title 5, United States Code.
    ``(3) The provisions of paragraphs (1) and (2) relating to any 
change in the method of computing the cost-of-living adjustment of the 
retired pay or retainer pay of members and former members of the Armed 
Forces shall be applicable to the computation of cost-of-living 
adjustments of the retired pay of commissioned officers of the National 
Oceanic and Atmospheric Administration and the retired pay of 
commissioned officers of the Public Health Service.''
    [The Central Intelligence Agency Retirement Act of 1964 for Certain 
Employees, referred to in Pub. L. 94-361, set out above, is Pub. L. 88-
643, Oct. 13, 1964, 78 Stat. 1043, which was revised generally by Pub. 
L. 102-496, title VIII, Sec. 802, Oct. 24, 1992, 106 Stat. 3196, is 
known as the Central Intelligence Agency Retirement Act and is 
classified generally to chapter 38 (Sec. 2001 et seq.) of Title 50, War 
and National Defense.]


    Increase in Certain Armed Force Members' Pay and Allowances Not 
                 Otherwise Tied to Consumer Price Index

    Pub. L. 93-210, Sec. 2, Dec. 28, 1973, 87 Stat. 908, provided that:
    ``(a) Notwithstanding any other provision of law, effective on the 
date of enactment of this Act [Dec. 28, 1973], the pay and allowances of 
members of the Armed Forces to whom this Act applies shall be increased 
to amounts equal to the amounts such pay and allowances would have been 
increased if the pay and allowances of such members had been increased, 
under section 1401a(b) of title 10, United States Code, by the same 
percentage rates, consecutively compounded, that the retired pay or 
retainer pay of members and former members of the Armed Forces entitled 
to retired pay or retainer pay since October 1, 1967, has been 
increased, and such member shall, on and after the date of enactment of 
this Act [Dec. 28, 1973], have his pay and allowances increased 
effective the same day and by the same percentage rate that the retired 
pay or retainer pay of members and former members of the Armed Forces is 
increased under such section 1401a(b).
    ``(b) This section applies to members of the Armed Forces entitled 
to pay and allowances under either of the following provisions of law:
        ``(1) The Act of June 26, 1948, chapter 677 (62 Stat. 1052) 
    [which authorized the appointment of one officer in the Regular Army 
    in the permanent grade of general, one officer in the Regular Air 
    Force in the permanent grade of general, and one officer in the 
    Regular Navy in the permanent grade of admiral].
        ``(2) The Act of September 18, 1950, chapter 952 (64 Stat. A224) 
    [which authorized the appointment of Omar N. Bradley to the 
    permanent grade of General of the Army].
    ``(c) No amounts shall be paid, as the result of the enactment of 
this section, for any period prior to the date of enactment of this 
section [Dec. 28, 1973].''


 Retroactive Adjustment of Retired or Retainer Pay of Persons Entitled 
  Thereto After November 30, 1966, But Prior to Effective Date of Next 
                       Increase After July 1, 1966

    Section 2(b) of Pub. L. 90-207 provided that: ``Notwithstanding 
section 1401a(d) of title 10, United States Code, a person who is a 
member or former member of an armed force on the date of enactment of 
this Act [Dec. 16, 1967] and who initially became, or hereafter 
initially becomes, entitled to retired pay or retainer pay after 
November 30, 1966, but before the effective date of the next increase 
after July 1, 1966, in the rates of monthly basic pay prescribed by 
section 203 of title 37, United States Code, is entitled to have his 
retired pay or retainer pay increased by 3.7 percent, effective as of 
the date of his entitlement to that pay.''

                  Section Referred to in Other Sections

    This section is referred to in sections 1402, 1402a, 1408, 1410, 
1434, 1451, 1452 of this title; title 37 section 322.
