
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: 5USC8340]

 
             TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES
 
                           PART III--EMPLOYEES
 
                   Subpart G--Insurance and Annuities
 
                         CHAPTER 83--RETIREMENT
 
                SUBCHAPTER III--CIVIL SERVICE RETIREMENT
 
Sec. 8340. Cost-of-living adjustment of annuities

    (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; and
        (2) the price index for a base quarter is the arithmetical mean 
    of such index for the 3 months comprising such quarter.

    (b) Except as provided in subsection (c) of this section, effective 
December 1 of each year, each annuity payable from the Fund having a 
commencing date not later than such December 1 shall be increased by the 
percent change in the price index for the base quarter of such year over 
the price index for the base quarter of the preceding year in which an 
adjustment under this subsection was made, adjusted to the nearest \1/
10\ of 1 percent.
    (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) of 
    this section to an annuity which is payable from the Fund to an 
    employee or Member who retires, to the widow, widower, or former 
    spouse,\1\ of a deceased employee or Member, or to the widow, 
    widower, former spouse, or insurable interest designee of a deceased 
    annuitant whose annuity has not been increased under this subsection 
    or subsection (b) of this section, shall be equal to the product 
    (adjusted to the nearest \1/10\ of 1 percent) of--
---------------------------------------------------------------------------
    \1\ So in original. The comma probably should not appear.
---------------------------------------------------------------------------
            (A) \1/12\ of the applicable percent change computed under 
        subsection (b) of this section, multiplied by
            (B) the number of months (not to exceed 12 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 widow, widower, former 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.

        (2) Effective from its commencing date, an annuity payable from 
    the Fund to an annuitant's survivor (except a child entitled under 
    section 8341(e) of this title), which annuity commences the day 
    after the death of the annuitant and after the effective date of the 
    first increase under this section, shall be increased by the total 
    percent increase the annuitant was receiving under this section at 
    death. However, the increase in a survivor annuity authorized by 
    section 8 of the Act of May 29, 1930, as amended to July 6, 1950, 
    shall be computed as if the annuity commencing date had been the 
    effective date of the first increase under this section.
        (3) For the purpose of computing the annuity of a child under 
    section 8341(e) of this title that commences after October 31, 1969, 
    the items $900, $1,080, $2,700, and $3,240 appearing in section 
    8341(e) of this title shall be increased by the total percent 
    increases allowed and in force under this section on or after such 
    day and, in case of a deceased annuitant, the items 60 percent and 
    75 percent appearing in section 8341(e) of this title shall be 
    increased by the total percent allowed and in force to the annuitant 
    under this section on or after such day.

    (d) This section does not authorize an increase in an additional 
annuity purchased at retirement by voluntary contributions.
    (e) The monthly installment of 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.
    (f) Effective September 1, 1966, or on the commencing date of 
annuity, whichever is later, the annuity of each surviving spouse whose 
entitlement to annuity payable from the Fund resulted from the death 
of--
        (1) an employee or Member before October 11, 1962; or
        (2) a retired employee or Member whose retirement was based on a 
    separation from service before October 11, 1962;

is increased by 10 percent.
    (g)(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 payable for GS-15 30 days before the 
    effective date of the adjustment under this section; or
        (B) the final pay (or average pay, if higher) of the employee or 
    Member with respect to whom the annuity is paid, increased by the 
    overall annual average percentage adjustments (compounded) in rates 
    of pay of the General Schedule under subchapter I of chapter 53 of 
    this title during the period--
            (i) beginning on the date the annuity commenced (or, in the 
        case of a survivor of the retired employee or Member, the date 
        the employee's or Member'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. 89-554, Sept. 6, 1966, 80 Stat. 576; Pub. L. 90-83, Sec. 1(79), 
Sept. 11, 1967, 81 Stat. 215; Pub. L. 91-93, title II, Sec. 204, Oct. 
20, 1969, 83 Stat. 139; Pub. L. 93-136, Sec. 1, Oct. 24, 1973, 87 Stat. 
490; Pub. L. 94-126, Sec. 2(b), Nov. 12, 1975, 89 Stat. 679; Pub. L. 94-
183, Sec. 2(35), Dec. 31, 1975, 89 Stat. 1058; Pub. L. 94-440, title 
XIII, Sec. 1306(a), (c)(1), Oct. 1, 1976, 90 Stat. 1462; Pub. L. 95-454, 
title IX, Sec. 906(a)(2), (3), Oct. 13, 1978, 92 Stat. 1224; Pub. L. 96-
499, title IV, Sec. 401(a), Dec. 5, 1980, 94 Stat. 2605; Pub. L. 97-35, 
title XVII, Sec. 1702(a), (b), Aug. 13, 1981, 95 Stat. 754; Pub. L. 97-
253, title III, Secs. 304(a), 309(a), Sept. 8, 1982, 96 Stat. 795, 798; 
Pub. L. 98-270, title II, Sec. 201(a), Apr. 18, 1984, 98 Stat. 157; Pub. 
L. 98-369, div. B, title II, Sec. 2201(b), July 18, 1984, 98 Stat. 1058; 
Pub. L. 99-251, title II, Sec. 204, Feb. 27, 1986, 100 Stat. 25.)

                      Historical and Revision Notes
                                1966 Act
------------------------------------------------------------------------
                                                    Revised Statutes and
     Derivation                U.S. Code             Statutes at Large
------------------------------------------------------------------------
                     5 U.S.C. 2268.                July 31, 1956, ch.
                                                    804, Sec.  401
                                                    ``Sec. 18''; added
                                                    Oct. 11, 1962, Pub.
                                                    L. 87-793, Sec.
                                                    1102(b) (less so
                                                    much as redesignated
                                                    Sec.  18 as 19), 76
                                                    Stat. 869.
------------------------------------------------------------------------

    In subsection (a), the words ``After January 1, 1964'' and ``other 
than 1964'' and subsection (a)(1) of former section 2268, are omitted as 
executed.
    In subsection (b), the words ``subsection (a) of this section'' are 
substituted for ``subsection (a)(1) or (a)(2) of this section'' since 
subsection (a)(1) has been omitted as executed.
    Standard changes are made to conform with the definitions applicable 
and the style of this title as outlined in the preface to the report.

                                1967 Act
------------------------------------------------------------------------
                                                    Source (Statutes at
 Section of title 5       Source (U.S. Code)               Large)
------------------------------------------------------------------------
8340(a)............  5 App.: 2268(a), (f).         Sept. 27, 1965, Pub.
8340(b)............  5 App.: 2268(b).               L. 89-205, Sec.
8340(c)............  5 App.: 2268(c).               1(c), 79 Stat. 840.
8340(d)............  5 App.: 2268(d).              Nov. 1, 1965, Pub. L.
                                                    89-314, Sec.  1, 79
                                                    Stat. 1162.
8340(e)............  5 App.: 2268(e).              July 18, 1966, Pub.
8340(f)............  5 App.: 2268(g).               L. 89-504, Sec.
                                                    507, 80 Stat. 302.
------------------------------------------------------------------------

    In subsection (a), the words ``Effective December 1, 1965 * * * 
before December 2, 1965,'' are substituted for ``Effective the first day 
of the third month which begins after the date of enactment of this 
amendment * * * not later than such effective date.'' In clause (1), the 
words ``month of July 1965'' are substituted for ``month latest 
published on date of enactment of this amendment'' for clarity and since 
the July 1965 price index was the price index for the month latest 
published on September 27, 1965, the date of enactment of the amendment. 
The word ``base'' is inserted before ``month of July 1965'' for clarity 
and on authority of the second sentence of 5 U.S.C. App. 2268(a) which 
provided: ``The month used in determining the increase based on the per 
centum rise in the price index under this subsection shall be the base 
month for determining the per centum change in the price index until the 
next succeeding increase occurs.'' In view of the foregoing and of the 
definition of ``base month'' in 5 U.S.C. 8331(16), the quoted sentence 
is omitted as executed and unnecessary. In clause (2), the words 
``before October 2, 1956,'' are substituted for ``on or before October 
1, 1956.'' In the second sentence, which is based on 5 App. U.S.C. 
2268(f), the words ``before January 1, 1966,'' are substituted for ``not 
later than December 31, 1965.'' In clause (B), the words ``Act of June 
25, 1958 (72 Stat. 219)'' are substituted for ``Public Law 85-465'' to 
conform to the style of title 5, United States Code.
    In the first sentence of subsection (b), the words ``after the first 
increase under this section,'' following ``Each month,'' are omitted as 
executed and unnecessary.
    In subsection (f), the words ``September 1, 1966,'' are substituted 
for ``the first day of the second month after the enactment of this 
subsection.''

                       References in Text

    Section 8 of the Act of May 29, 1930, as amended to July 6, 1950, 
referred to in subsec. (c)(2), is the predecessor of section 8338 of 
this title.


                               Amendments

    1986--Subsec. (c)(1). Pub. L. 99-251 substituted ``, widower, or 
former spouse,'' for first reference to ``or widower'', and ``, widower, 
former spouse, or insurable interest designee'' for second and third 
references to ``or widower''.
    1984--Subsec. (a). Pub. L. 98-270 substituted provisions defining 
term ``base quarter'' as meaning the calendar quarter ending Sept. 30 of 
a year and providing that the price index for a base quarter is the 
arithmetical mean of such index for the three months comprising such 
quarter for former provisions which had directed that, effective Dec. 1, 
1965, each annuity payable from the Fund having a commencing date before 
Dec. 2, 1965, was increased by (1) the percent rise in the price index, 
adjusted to the nearest \1/10\ of 1 percent, determined by the Office of 
Personnel Management on the basis of the annual average price index for 
calendar year 1962 and the price index for the base month of July 1965; 
plus (2) 6\1/2\ percent if the commencing date (or in the case of the 
survivor of a deceased annuitant the commencing date of the annuity of 
the retired employee) occurred before Oct. 2, 1956, or 1\1/2\ percent if 
the commencing date (or in the case of the survivor of a deceased 
annuitant the commencing date of the annuity of the retired employee) 
occurred after Oct. 1, 1956, that each annuity payable from the Fund 
(other than the immediate annuity of an annuitant's survivor or of a 
child entitled under section 8341(e) of this title) having a commencing 
date after Dec. 1, 1965, but before Jan. 1, 1966, was increased from its 
commencing date as if the annuity commencing date were Dec. 1, 1965, and 
that each survivor annuity authorized by (A) section 8 of the Act of May 
29, 1930, as amended to July 6, 1950, or (B) section 2 of the Act of 
June 25, 1958 (72 Stat. 219), was increased by any additional amount 
required to make the total increase under this subsection equal to the 
smaller of 15 percent or $10 a month.
    Subsec. (b). Pub. L. 98-270 substituted ``Except as provided in 
subsection (c) of this section, effective December 1 of each year, each 
annuity payable from the Fund having a commencing date not later than 
such December 1 shall be increased by the percent change in the price 
index for the base quarter of such year over the price index for the 
base quarter of the preceding year in which an adjustment under this 
subsection was made, adjusted to the nearest \1/10\ of 1 percent'' for 
``Except as provided in subsection (c) of this section, effective March 
1 of each year each annuity payable from the Fund having a commencing 
date not later than such March 1 shall be increased by the percent 
change in the price index published for December of the preceding year 
over the price index published for December of the year prior to the 
preceding year, adjusted to the nearest \1/10\ of 1 percent''.
    Subsec. (c)(1)(A). Pub. L. 98-369, Sec. 2201(b)(1), substituted 
``computed'' for ``computer''.
    Subsec. (c)(2)(B). Pub. L. 98-369, Sec. 2201(b)(2), substituted 
``not to exceed 12 months, counting'' for ``counting''.
    1982--Subsec. (e). Pub. L. 97-253, Sec. 304(a), substituted 
``rounded to the next lowest'' for ``fixed at the nearest''.
    Subsec. (g). Pub. L. 97-253, Sec. 309(a), added subsec. (g).
    1981--Subsec. (b). Pub. L. 97-35, Sec. 1702(a), substituted 
provisions that except as provided in subsec. (c), the annuities payable 
from the Fund having a commencing date not later than March 1 of each 
year shall be increased by the percent change in the price index 
published for December of the preceding year over the price index 
published for December of the year prior to the preceding year, adjusted 
to the nearest \1/10\ of 1 percent, for provisions requiring the Office 
to determine on Jan. 1 and July 1 of each year the percent change in the 
price index based on the data for a six month period and to adjust the 
annuities in March and September of each year according to specified 
formula when there is a rise in the price index.
    Subsec. (c)(1). Pub. L. 97-35, Sec. 1702(b), in opening provision 
inserted reference to the widow or widower of a deceased annuitant whose 
annuity has not been increased under this subsection or subsection (b) 
of this section, in par. (A) substituted ``\1/12\'' for ``\1/6\'', and 
in subpar. (B) designated existing provisions as item (i) and added item 
(ii).
    1980--Subsec. (c)(1). Pub. L. 96-499, substituted formula for 
computing the first increase to be made under subsec. (b) of this 
section to an annuity which is payable from the Fund to an employee or 
Member who retires, to the widow or widower of a deceased employee or 
Member for provisions that an annuity, except a deferred annuity under 
section 8338 of this title or any other provision of law, payable from 
the Fund to an employee or Member who retires, or to the widow or 
widower of a deceased employee or Member and having a commencing date 
after the effective date of the then last preceding annuity increase 
under subsec. (b) of 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 the then last preceding annuity increase 
under subsec. (b) of this section and that employees or deceased 
employees were to be deemed, for purposes of section 8339(m) of this 
title to have to their credit, on the effective date of the last 
preceding increase under subsec. (b), unused sick leave equal to that 
unused sick leave to his credit on the date of separation from service.
    1978--Subsecs. (a)(1), (b)(1). Pub. L. 95-454 substituted ``Office 
of Personnel Management'' for ``Civil Service Commission'' and 
``Office'' for ``Commission''.
    1976--Subsec. (b). Pub. L. 94-440, Sec. 1306(a), struck out ``1 
percent plus'' after ``shall be increased by''.
    Pub. L. 94-440, Sec. 1306(c)(1), substituted provisions requiring 
that Commission shall determine percent change in price index on Jan. 1 
and July 1 of each year and effective Mar. 1 or Sept. 1, each annuity 
payable from Fund shall be increased by the computed percent change in 
the price index adjusted to the nearest \1/10\ of 1 percent, for 
provisions requiring that Commission shall determine percent change in 
price index on a monthly basis and effective the first day of the third 
month that begins after the price index change equals a rise of 3 
percent for 3 consecutive months over the prior price index, each 
annuity payable from Fund shall be increased by the highest rise in the 
price index over those months adjusted to the nearest \1/10\ of 1 
percent.
    1975--Subsec. (c)(1). Pub. L. 94-126 substituted reference to 
``section 8339(m) of this title'' for ``section 8339(n) of this title''.
    Subsec. (c)(3). Pub. L. 94-183 substituted ``after October 31, 
1969'' for ``on or after the first day of the first month that begins on 
or after the date of enactment of the Civil Service Retirement 
Amendments of 1969''.
    1973--Subsec. (c). Pub. L. 93-136 redesignated existing pars. (1) 
and (2) as pars. (2) and (3) and added par. (1).
    1969--Subsec. (b). Pub. L. 91-93, Sec. 204(a), increased the annuity 
payable from the Fund by 1 percent.
    Subsec. (c)(2). Pub L. 91-93, Sec. 204(b), increased the minimum 
survivor annuity for children of a deceased Federal employee, 
substituting dollar and percentage references to $900, $1,080, $2,700, 
$3,240, and 60 and 75 percent for prior references to $600, $720, 
$1,800, $2,160 and 40 and 50 percent respectively, such new increases to 
commence on or after the first day of the first month that begins on or 
after Oct. 20, 1969, the date of enactment of the Civil Service 
Retirement Amendments of 1969, whereas prior provisions were for 
computation of a child's annuity commencing after effective date of 
first increase under this section based on employee annuity that 
commenced after Oct. 1, 1956, or was payable at death.


                    Effective Date of 1984 Amendment

    Section 201(b) of Pub. L. 98-270 provided that:
    ``(1) The amendments made by subsection (a) [amending this section] 
shall take effect on the date of the enactment of this Act [Apr. 18, 
1984], except that no adjustment under section 8340(b) of title 5, 
United States Code (as amended by such subsection), shall be made during 
the period beginning on the date of the enactment of this Act and ending 
November 30, 1984.
    ``(2)(A) For purposes of the first adjustment under section 8340(b) 
of title 5, United States Code (as amended by subsection (a)), the base 
quarter ending September 30, 1983, shall be considered to have been a 
base quarter in which an adjustment under such section (as so amended) 
was made.
    ``(B) As used in subparagraph (A), the term `base quarter' has the 
meaning given such term by section 8340(a)(1) of title 5, United States 
Code (as amended by subsection (a)).''


                    Effective Date of 1982 Amendment

    Section 304(c) of Pub. L. 97-253 provided that: ``The amendments 
made by subsections (a) and (b) [amending this section and section 8345 
of this title] shall apply with respect to any annuity commencing on or 
after October 1, 1982, and with respect to any adjustment or 
redetermination of any annuity made on or after such date''.
    Section 309(b) of Pub. L. 97-253 provided that: ``The amendment made 
by subsection (a) of this section [amending this section] shall not 
cause any annuity to be reduced below the rate that is payable on the 
date of the enactment of this Act [Sept. 8, 1982], but shall apply to 
any adjustment occurring on or after such date of enactment under 
section 8340 of title 5, United States Code, to any annuity payable from 
the Civil Service Retirement and Disability Fund, whether such annuity 
has a commencing date before, on, or after the date of enactment of this 
Act.''


                    Effective Date of 1981 Amendment

    Section 1702(c) of Pub. L. 97-35 provided that: ``The amendments 
made by this section [amending this section] shall take effect on the 
date of the enactment of this Act [Aug. 13, 1981] and shall apply to 
annuities which commence before, on, or after such date.''


                    Effective Date of 1980 Amendment

    Section 401(b) of Pub. L. 96-499 provided that:
    ``(1) The amendment made by subsection (a)(1) [amending this 
section] shall apply with respect to annuities commencing after the 45th 
day after the date of the enactment of this Act [Dec. 5, 1980].
    ``(2) The amendment made by subsection (a)(2) [amending this 
section] shall take effect with respect to any annuity increase which 
takes effect after the date of the enactment of this Act [Dec. 5, 
1980].''


                    Effective Date of 1978 Amendment

     Amendment by Pub. L. 95-454 effective 90 days after Oct. 13, 1978, 
see section 907 of Pub. L. 95-454, set out as a note under section 1101 
of this title.


                    Effective Date of 1976 Amendment

    Section 1306(b) of Pub. L. 94-440 provided that: ``The amendment 
made by subsection (a) [amending this section] shall apply to any 
increase in annuities after the date of enactment of this Act [Oct. 1, 
1976].''
    Section 1306(c)(2) of Pub. L. 94-440 provided that: ``The amendment 
made by subsection (1) [amending this section] shall apply to any 
increase in annuities 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 Commission is to determine a percent 
change, such percent change shall be determined by computing the change 
in the price index published for the month immediately preceding such 
first date over the price index for the last month prior to the date of 
enactment of this Act for which the price index showed a percent rise 
forming the basis for a cost-of-living annuity increase under section 
8340(b) of title 5, United States Code [subsec. (b) of this section], as 
in effect immediately prior to the date of the enactment of this Act 
[Oct. 1, 1976].''


                    Effective Date of 1973 Amendment

    Section 2 of Pub. L. 93-136 provided that: ``The amendments made by 
this Act [amending this section] shall apply only with respect to 
annuities which commence on or after July 2, 1973.''


                    Effective Date of 1969 Amendment

    Section 207(b) of Pub. L. 91-93 provided that: ``The amendments made 
by section 204(a) of this Act to section 8340 of title 5, United States 
Code, shall apply only to annuity increases which become effective under 
such section 8340 after the date of enactment of this Act [Oct. 20, 
1969].''


Delay in Cost-of-Living Adjustments During Fiscal Years 1994, 1995, and 
                                  1996

    Pub. L. 103-66, title XI, Sec. 11001, Aug. 10, 1993, 107 Stat. 408, 
provided that:
    ``(a) Applicability.--This section shall apply with respect to any 
cost-of-living increase scheduled to take effect, during fiscal year 
1994, 1995, or 1996, under--
        ``(1) section 8340(b) or 8462(b) of title 5, United States Code;
        ``(2) section 826 or 858 of the Foreign Service Act of 1980 [22 
    U.S.C. 4066, 4071g]; or
        ``(3) section 291 of the Central Intelligence Agency Retirement 
    Act (50 U.S.C. 2131), as set forth in section 802 of the CIARDS 
    Technical Corrections Act of 1992 (Public Law 102-496; 106 Stat. 
    3196).
    ``(b) Delay in Effective Date of Adjustments.--A cost-of-living 
increase described in subsection (a) shall not take effect until the 
first day of the third calendar month after the date such increase would 
otherwise take effect.
    ``(c) Rule of Construction.--Nothing in this section shall be 
considered to affect any determination relating to eligibility for an 
annuity increase or the amount of the first increase in an annuity under 
section 8340(b) or (c) or section 8462(b) or (c) of title 5, United 
States Code, or comparable provisions of law.''


Time of Payment of Annuity or Retired or Retirement Pay Which President 
                                 Adjusts

    Section 2201(a) of Pub. L. 98-369 provided that: ``Notwithstanding 
any other provision of law, beginning with the monthly rate payable for 
December 1984, any annuity or retired or retirement pay payable under 
any retirement system for Government officers or employees which the 
President adjusts pursuant to section 8340(b) of title 5, United States 
Code, shall be paid no earlier than the first business day of the 
succeeding month.''


   Cost-of-Living Adjustments During Fiscal Years 1983, 1984, and 1985

    Section 301(a)-(c) of Pub. L. 97-253, as amended by Pub. L. 98-270, 
title I, Sec. 201(c), Apr. 18, 1984, 98 Stat. 158; Pub. L. 98-396, title 
I, Aug. 22, 1984, 98 Stat. 1403, provided that:
    ``(a)(1) Except as provided in paragraph (3), the cost-of-living 
increase under any Government retirement system in annuity or retired or 
retainer pay of any early retiree taking effect in each of fiscal years 
1983, 1984, and 1985, shall be equal to one-half of the assumed increase 
in the price index for that year.
    ``(2) For purposes of this subsection, an individual shall be 
considered to be an early retiree if--
        ``(A) the individual is under the age of 62 years as of the 
    effective date of the cost-of-living increase involved (determined 
    without regard to subsection (b));
        ``(B) the annuity or retired or retainer pay of the individual 
    is not computed in whole or in part based on any disability of the 
    individual; and
        ``(C) the annuity or retired or retainer pay of the individual 
    is based upon the Government service of the individual.
    ``(3) If the percentage increase in the price index for fiscal year 
1983, 1984, or 1985 (as determined by the Office of Personnel Management 
under section 8340(b) of title 5, United States Code) exceeds the 
assumed increase in the price index for that year, then the increase in 
the annuity or retired or retainer pay of an early retiree under 
paragraph (1) taking effect in that fiscal year shall be equal to--
        ``(A) one-half of the assumed increase in the price index for 
    that year, plus
        ``(B) the amount by which the percentage increase in the price 
    index exceeds the assumed price index increase.
If the percentage increase in the price index for fiscal year 1985 (as 
determined by the Office of Personnel Management under section 8340(b) 
of title 5, United States Code) is less than the assumed increase in the 
price index for that year, then the increase in the annuity or retired 
or retainer pay of an early retiree under paragraph (1) taking effect in 
that fiscal year shall be equal to the percentage increase in the price 
index for that year (as so determined).
    ``(4) As used in this subsection--
        ``(A) the term `price index' has the meaning given such term in 
    section 8331(15) of title 5, United States Code; and
        ``(B) the term `assumed increase in the price index' means--
            ``(i) 6.6 percent, in the case of fiscal year 1983,
            ``(ii) 7.2 percent, in the case of fiscal year 1984, and
            ``(iii) 6.6 percent, in the case of fiscal year 1985.
    ``(5) The amount of any survivor annuity which is based on the 
service of any early retiree subject to this subsection shall be 
computed as if this subsection had not been enacted.
    ``(b) [Repealed. Pub. L. 98-270, title II, Sec. 201(c)(2), Apr. 18, 
1984, 98 Stat. 158.]
    ``(c) For purposes of this section, the term `cost-of-living 
increase under a Government retirement system' means any increase 
under--
        ``(1) section 8340(b) of title 5, United States Code;
        ``(2) section 826 of the Foreign Service Act of 1980 [22 U.S.C. 
    4066];
        ``(3) the Central Intelligence Agency Act of 1964 for Certain 
    Employees (50 U.S.C. 403 note);
        ``(4) section 1401a(b) of title 10, United States Code; or
        ``(5) any other adjustment of any annuity under a retirement 
    system for Government officers or employees which the President 
    determines, by Executive order, is based on adjustments under any of 
    the provisions referred to in the preceding paragraph.''


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 Amendment

    See provisions of section 801(c) of Pub. L. 94-361, title VIII, July 
14, 1976, 90 Stat. 929, set out as a note under section 1401a of Title 
10, Armed Forces.

                  Section Referred to in Other Sections

    This section is referred to in sections 8334, 8339, 8341, 8344, 
8348, 8349, 8443, 8462 of this title; title 22 sections 3682, 4066; 
title 28 sections 373, 376, 377, 611, 627; title 31 section 777; title 
50 section 2131.
