5 U.S.C. § 8462 — Cost-of-living adjustments

Page 1184 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 8462 under section 8347(q) or 8461(n) of this title to remain covered under subchapter III of chapter 83 of this title, chapter 84 of this title, or a retirement system for em- ployees described in section 2105(c) of this title, see sec- tion 7202(n) of Pub. L. 101–508, set out as a note under section 2105 of this title. § 8462. Cost-of-living adjustments (a) For the purpose of this section— (1) the term ‘‘base quarter’’, as used with re- spect to a year, means the calendar quarter ending on September 30 of such year; (2) the price index for a base quarter is the arithmetical mean of such index for the 3 months comprising such quarter; and (3) the term ‘‘percent change in the price index’’, as used with respect to a year, means the percentage derived by— (A) reducing— (i) the price index for the base quarter of such year, by (ii) the price index for the base quarter of the preceding year in which an adjust- ment under this subsection was made; (B) dividing the difference under subpara- graph (A) by the price index referred to in subparagraph (A)(ii); and (C) multiplying the quotient under sub- paragraph (B) by 100. (b)(1) Except as provided in subsection (c), ef- fective December 1 of any year in which an ad- justment under this subsection is to be made, as determined under paragraph (2), each annuity payable from the Fund under this chapter (other than an annuity under section 8443) having a commencing date not later than such December 1 shall be adjusted as follows: (A) If the percent change in the price index for the year does not exceed 3 percent, each annuity subject to adjustment under this sub- section shall be increased by the lesser of— (i) the percent change in the price index (rounded to the nearest one-tenth of 1 per- cent); or (ii) 2 percent. (B) If the percent change in the price index for the year exceeds 3 percent, each annuity subject to adjustment under this subsection shall be increased by the excess of— (i) the percent change in the price index (rounded to the nearest one-tenth of 1 per- cent), over (ii) 1 percent. (2) An adjustment under this subsection shall be made in a year only if the price index for the base quarter of such year exceeds the price index for the base quarter of the preceding year in which an adjustment under this subsection was made. (3) An annuity under this chapter shall not be subject to adjustment under section 8340. Noth- ing in the preceding sentence shall affect the computation of any amount under section 8443(a)(2). (c) Eligibility for an annuity increase under this section is governed by the commencing date of each annuity payable from the Fund as of the effective date of an increase, except as follows: (1) The first increase (if any) made under subsection (b) to an annuity which is payable from the Fund to an annuitant or survivor (other than a child under section 8443) whose annuity has not been increased under this sub- section or subsection (b) shall be equal to the product (adjusted to the nearest one-tenth of 1 percent) of— (A) one-twelfth of the applicable percent change computed under subsection (b), mul- tiplied 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 survivor of a deceased annuitant whose annuity has not been so increased, since the annuity was first pay- able to the deceased annuitant. (2) Effective from its commencing date, an annuity payable from the Fund to an annu- itant’s survivor (other than a widow or wid- ower whose annuity is computed under section 8442(g) or a child under section 8443) shall be increased by the total percentage by which the deceased annuitant’s annuity had been in- creased under this section during the period beginning on the date the deceased annu- itant’s annuity commenced and ending on the date of the deceased annuitant’s death. (3)(A) An adjustment under subsection (b) for any year shall not be effective with respect to the annuity of an annuitant who is under 62 years of age as of the date on which such ad- justment would otherwise first take effect. (B)(i) Except as provided in clause (ii), this paragraph applies only with respect to an an- nuitant under section 8412, 8413, or 8414. (ii) This paragraph does not apply with re- spect to an annuitant under subsection (d)(1) or (e) of section 8412 or (in the case of an annu- itant separated from service as a military re- serve technician as a result of disability) under section 8414(c). (4) The first increase (if any) made under subsection (b) to an annuity which is payable from the Fund to a widow or widower whose annuity is computed under section 8442(g) shall be equal to the product (adjusted to the nearest one-tenth of 1 percent) of— (A) one-twelfth of the applicable percent change computed under subsection (b), mul- tiplied by (B) the number of months (not to exceed 12 months, counting any portion of a month as a month) since— (i) the effective date of the adjustment last made under this section in the annu- ity of the annuitant on whose service on the widow’s or widower’s annuity is based; or (ii) if the annuity of the annuitant (re- ferred to in clause (i)) has not been in- creased under this section, the commence- ment date of such annuitant’s annuity (de- termined subject to section 8452(a)(1)(B)). (d) The monthly installment of an annuity after adjustment under this section shall be rounded to the next lowest dollar. However, the monthly installment shall, after adjustment, re- flect an increase of at least $1. Page 1185 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 8464a (e) The $15,000 amount referred to in section 8442(b)(1)(A)(ii) shall be increased at the same time that, and by the same percent as the per- centage by which, annuities under subchapter III of chapter 83 are increased. (Added Pub. L. 99–335, title I, § 101(a), June 6, 1986, 100 Stat. 572; amended Pub. L. 99–556, title I, § 117(b), Oct. 27, 1986, 100 Stat. 3134; Pub. L. 117–225, § 3(b)(2)(A)(vi), Dec. 9, 2022, 136 Stat. 2296.) Editorial Notes AMENDMENTS 2022—Subsec. (c)(3)(B)(ii). Pub. L. 117–225 inserted ‘‘(1)’’ after ‘‘subsection (d)’’. 1986—Subsec. (b)(3). Pub. L. 99–556 inserted provision relating to the computation of any amount under sec- tion 8443(a)(2). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2022 AMENDMENT Amendment by Pub. L. 117–225 effective Dec. 9, 2022, and applicable to an individual who suffers an illness or injury described in certain Code provisions on or after the date that is 2 years after Dec. 9, 2022, see section 3(f) of Pub. L. 117–225, set out as a note under section 8336 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 subsec. (b) of 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 this title. § 8463. Rate of benefits Each annuity payable from the Fund is stated as an annual amount, one-twelfth of which, rounded to the next lower dollar, constitutes the monthly rate payable on the first business day of the first month beginning after the month for which it has accrued. (Added Pub. L. 99–335, title I, § 101(a), June 6, 1986, 100 Stat. 574.) § 8464. Commencement and termination of annu- ities of employees and Members (a)(1) Except as otherwise provided in this chapter— (A) an annuity payable from the Fund com- mences on the first day of the month after— (i) separation from the service, in the case of an employee or Member retiring under section 8412, or subsection (a), (b)(1)(B), or (d) of section 8414; or (ii) pay ceases, and the applicable age and service requirements are met, in the case of an employee or Member retiring under sec- tion 8413; (B) an annuity payable from the Fund com- mences on the day after separation from the service in the case of an employee retiring under subsection (b)(1)(A) or (c) of section 8414; and (C) an annuity payable from the Fund com- mences on the day after separation from the service or the day after pay ceases and the re- quirements for title to an annuity are met in the case of an employee or Member retiring under section 8451. (2) Notwithstanding paragraph (1)(A)(i), an an- nuity payable from the Fund commences on the day after separation from the service in the case of an employee or Member— (A) who retires under section 8412; and (B) whose separation occurs upon the expira- tion of a term (or other period) for which the individual was appointed or elected. (b) Except as otherwise provided in this chap- ter, the annuity of an annuitant under sub- chapter II or V of this chapter terminates on the date death or other terminating event occurs. (Added Pub. L. 99–335, title I, § 101(a), June 6, 1986, 100 Stat. 574; amended Pub. L. 105–261, div. A, title XI, § 1109(c)(2), Oct. 17, 1998, 112 Stat. 2145; Pub. L. 106–58, title VI, § 651(b), Sept. 29, 1999, 113 Stat. 480; Pub. L. 106–398, § 1 [[div. A], title XI, § 1152(c)(2)], Oct. 30, 2000, 114 Stat. 1654, 1654A–323; Pub. L. 107–107, div. A, title X, § 1048(f)(2), Dec. 28, 2001, 115 Stat. 1228.) Editorial Notes AMENDMENTS 2001—Subsec. (a)(1)(A)(i). Pub. L. 107–107 amended di- rectory language of Pub. L. 106–398. See 2000 Amend- ment note below. 2000—Subsec. (a)(1)(A)(i). Pub. L. 106–398, as amended by Pub. L. 107–107, substituted ‘‘, (b)(1)(B), or (d)’’ for ‘‘or (b)(1)(B)’’. 1999—Subsec. (a)(1)(A)(i). Pub. L. 106–58 repealed Pub. L. 105–261, § 1109(c)(2). See 1998 Amendment note below. 1998—Subsec. (a)(1)(A)(i). Pub. L. 105–261, § 1109(c)(2), which directed substitution of ‘‘, (b)(1)(B), or (d)’’ for ‘‘or (b)(1)(B)’’, was repealed by Pub. L. 106–58. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2001 AMENDMENT Pub. L. 107–107, div. A, title X, § 1048(f), Dec. 28, 2001, 115 Stat. 1228, provided that the amendment made by section 1048(f)(2) is effective as of Oct. 30, 2000, and as if included in the Floyd D. Spence National Defense Au- thorization Act for Fiscal Year 2001, as enacted into law by Pub. L. 106–398. § 8464a. Relationship between annuity and work- ers’ compensation (a)(1) An individual is not entitled to receive— (A) an annuity under subchapter II or V, and (B) compensation for injury to, or disability of, such individual under subchapter I of chap- ter 81, other than compensation payable under section 8107, covering the same period of time. (2) An individual is not entitled to receive an annuity under subchapter IV and a concurrent benefit under subchapter I of chapter 81 on ac- count of the death of the same person. (3) Paragraphs (1) and (2) do not bar the right of a claimant to the greater benefit conferred by either this chapter or subchapter I of chapter 81. (b) If an individual is entitled to an annuity under subchapter II, IV, or V, and the individual receives a lump-sum payment for compensation under section 8135 based on the disability or death of the same person, so much of the com- pensation as has been paid for a period extended