
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: 22USC4066]

 
               TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
 
                       CHAPTER 52--FOREIGN SERVICE
 
       SUBCHAPTER VIII--FOREIGN SERVICE RETIREMENT AND DISABILITY
 
        Part I--Foreign Service Retirement and Disability System
 
Sec. 4066. Cost-of-living adjustment of annuities


(a) Effective date

    A cost-of-living annuity increase shall become effective under this 
section on the effective date of each such increase under section 
8340(b) of title 5. Each such increase shall be applied to each annuity 
payable from the Fund under this part which has a commencing date not 
later than the effective date of the increase.

(b) Applicability of increases under other provisions of law

    Each annuity increase under this section shall be identical to the 
corresponding percentage increase under section 8340(b) of title 5.

(c) Eligibility for increases

    Eligibility for an annuity increase under this section shall be 
governed by the commencing date of each annuity payable from the Fund 
under this part as of the effective date of an increase except as 
follows:
        (1) The first increase (if any) made under this section to an 
    annuity which is payable from the Fund to a participant or to the 
    surviving spouse or former spouse of a deceased participant who died 
    in service or a deceased annuitant whose annuity was not increased 
    under this section, shall be equal to the product (adjusted to the 
    nearest \1/10\ of 1 percent) of--
            (A) \1/12\ of the applicable percent change computed under 
        subsection (b) of this section, multiplied by
            (B) the number of months (counting any portion of a month as 
        a month)--
                (i) for which the annuity was payable from the Fund 
            before the effective date of the increase, or
                (ii) in the case of a surviving spouse or former spouse 
            of a deceased annuitant whose annuity has not been so 
            increased, since the annuity was first payable to the 
            deceased annuitant.

        (2) Effective from its commencing date, an annuity payable from 
    the Fund under this part to the survivor of an annuitant, except a 
    child entitled to an annuity under section 4046(c) of this title or 
    section 4049(c) or (d) of this title, shall be increased by the 
    total percentage increase the annuitant was receiving under this 
    section at death.
        (3) For purposes of computing or recomputing an annuity to a 
    child under section 4046(c) or (d) of this title or section 4049(c) 
    or (d) of this title, the items $900, $1,080, $2,700, and $3,240 
    appearing in section 4046(c) of this title shall be increased by the 
    total percentage increases by which corresponding amounts are being 
    increased under section 8340 of title 5 on the date the annuity of 
    the child becomes effective.

(d) Exclusion of additional annuity purchased after retirement by 
        voluntary contribution

    No increase in annuity provided by this section shall be computed on 
any additional annuity purchased at retirement by voluntary 
contributions.

(e) Rounding off of amount; minimum increases

    The monthly installment of annuity after adjustment under this 
section shall be rounded to the next lowest dollar, except such 
installment shall after adjustment reflect an increase of at least $1.

(f) Rate of increase for surviving spouses of annuitants electing 
        reduced annuity

    Effective from its commencing date, there shall be an increase of 10 
percent in the annuity of each surviving spouse whose entitlement to 
annuity resulted from the death of an annuitant who, prior to October 1, 
1976, elected a reduced annuity in order to provide a spouse's survivor 
annuity.

(g) Maximum annuity

    (1) An annuity shall not be increased by reason of any adjustment 
under this section to an amount which exceeds the greater of--
        (A) the maximum pay rate payable for class FS-1 under section 
    3963 of this title, 30 days before the effective date of the 
    adjustment under this section; or
        (B) the final pay (or average pay, if higher) of the former 
    participant with respect to whom the annuity is paid, increased by 
    the overall annual average percentage adjustments (compounded) in 
    rates of pay of the Foreign Service Schedule under such section 3963 
    of this title during the period--
            (i) beginning on the date the annuity commenced (or, in the 
        case of a survivor of the retired participant, the date the 
        participant's annuity commenced), and
            (ii) ending on the effective date of the adjustment under 
        this section.

    (2) 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.

(Pub. L. 96-465, title I, Sec. 826, Oct. 17, 1980, 94 Stat. 2123; Ex. 
Ord. No. 12289, Sec. 1, Feb. 14, 1981, 46 F.R. 12693; Ex. Ord. No. 
12446, Secs. 2(a), 6(a), Oct. 17, 1983, 48 F.R. 48443, 48446; Pub. L. 
99-335, title IV, Sec. 402(a)(3), June 6, 1986, 100 Stat. 609; Pub. L. 
100-238, title II, Sec. 219, Jan. 8, 1988, 101 Stat. 1775.)


                               Amendments

    1988--Subsec. (c)(1). Pub. L. 100-238 amended par. (1) generally. 
Prior to amendment, par. (1) read as follows: ``The first increase (if 
any) made under this section to an annuity which is payable from the 
Fund under this part to a participant or to the surviving spouse of a 
deceased participant who dies in service shall be equal to the product 
(adjusted to the nearest \1/10\ of 1 percent) of--
        ``(a) \1/6\ of the applicable percent change determined under 
    subsection (b) of this section, multiplied by
        ``(b) the number of full months for which the annuity was 
    payable from the Fund under this part before the effective date of 
    the increase (counting any portion of a month as a full month).
In the administration of this paragraph, the number of days of unused 
sick leave to the credit of a participant or deceased participant on the 
effective date of the then last preceding general annuity increase under 
this section shall be deemed to be equal to the number of days of unused 
sick leave to his or her credit on the day of separation from the 
Service.''
    1986--Subsecs. (a), (c). Pub. L. 99-335 inserted ``under this part'' 
after ``payable from the Fund'' wherever appearing.
    1983--Subsec. (e). Ex. Ord. No. 12446, Sec. 2(a), substituted 
``rounded to the next lowest'' for ``fixed at the nearest''.
    Subsec. (g). Ex. Ord. No. 12446, Sec. 6(a), added subsec. (g).
    1981--Subsec. (c)(1). Ex. Ord. No. 12289 amended first sentence of 
par. (1) generally. Prior to amendment, first sentence read as follows: 
``An annuity (except a deferred annuity) payable from the Fund to a 
participant who retires and receives an immediate annuity, or to a 
surviving spouse or former spouse of a deceased participant who dies in 
service or who dies after being separated with benefits under section 
4009(b)(2) of this title, which has a commencing date after the 
effective date of the then last preceding general annuity increase under 
this section shall not be less than the annuity which would have been 
payable if the commencing date of such annuity had been the effective 
date of such last preceding increase.''


                    Effective Date of 1988 Amendment

    Amendment by Pub. L. 100-238 effective 90 days after Jan. 8, 1988, 
see section 261(a) of Pub. L. 100-238, set out as a note under section 
4054 of this title.


                    Effective Date of 1986 Amendment

    Amendment by Pub. L. 99-335 effective Jan. 1, 1987, see section 
702(a) of Pub. L. 99-335, set out as an Effective Date note under 
section 8401 of Title 5, Government Organization and Employees.


                    Effective Date of 1983 Amendment

    Amendment by section 2(a) Ex. Ord. No. 12446 effective with respect 
to any adjustment or redetermination of any annuity made on or after 
Oct. 17, 1983, see section 2(b) of Ex. Ord. No. 12446, set out under 
section 4067 of this title.
    Amendment by section 6 of Ex. Ord. No. 12446 applicable to any 
adjustment occurring on or after Apr. 1, 1983 under this section to any 
annuity payable from the Foreign Service Retirement and Disability Fund, 
whether such annuity has a commencing date before, on, or after Oct. 17, 
1983, but shall not cause any annuity to be reduced below the rate that 
is payable on Oct. 17, 1983, see section 6(b) of Ex. Ord. No. 12446, set 
out under section 4067 of this title.


                    Effective Date of 1981 Amendment

    Amendment by Ex. Ord. No. 12289 effective Feb. 15, 1981, see section 
3 of Ex. Ord. No. 12289, set out under section 4067 of this title.


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 this section delayed until first day of 
third calendar month after date such increase would otherwise take 
effect, see section 11001 of Pub. L. 103-66, set out as a note under 
section 8340 of Title 5, Government Organization and Employees.

                  Section Referred to in Other Sections

    This section is referred to in sections 4046, 4054 of this title.
