REVISION IN METHOD BY WHICH ANNUAL PAY ADJUSTMENTS FOR CERTAIN EXECUTIVE, LEGISLATIVE, AND JUDICIAL POSITIONS ARE TO BE MADE.

SEC. 704. REVISION IN METHOD BY WHICH ANNUAL PAY ADJUSTMENTS FOR CERTAIN EXECUTIVE, LEGISLATIVE, AND JUDICIAL POSITIONS ARE TO BE MADE. (a) Percent Change in the Employment Cost Index.— (1) Method for computing percent change in the eci.— (A) Definitions.—For purposes of this paragraph— (i) the term “Employment Cost Index” or “ECI” means the Employment Cost Index (wages and salaries, private industry workers) published quarterly by the Bureau of Labor Statistics; and (ii) the term “base quarter” means the 3-month period ending on December 31 of a year. (B) Method.—For purposes of the provisions of law amended by paragraph (2), the “most recent percentage change in the ECI”, as of any date, shall be one-half of 1 percent less than the percentage (rounded to the nearest one-tenth of 1 percent) derived by— (i) reducing— (I) the ECI for the last base quarter prior to that date, by (II) the ECI for the second to last base quarter prior to that date, (ii) dividing the difference under clause (i) by the ECI for the base quarter referred to in clause (i)(II), and (iii) multiplying the quotient under clause (ii) by 100, except that no percentage change determined under this paragraph shall be— (I) less than zero; or (II) greater than 5 percent (2) Provisions through which new method is to be implemented.— (A) Amendment to titles 3, 5, and 28 of the united states code.—Section 104 of title 3, United States Code, section 5318 of title 5, United States Code, and section 461(a) of title 28, United States Code, are amended by striking “corresponds to” and all that follows thereafter through the period, and inserting the following: “corresponds to the most recent percentage change in the ECI (relative to the date described in the next sentence), as determined under section 704(a)(1) of the Ethics Reform Act of 1989. The appropriate date under this sentence is the first day of the fiscal year in which such adjustment in the rates of pay under the General Schedule takes effect.”. (B) Amendment to the legislative reorganization act of 1946.—Section 601(a)(2) of the Legislative Reorganization Act of 1946 (2 U.S.C. 31(2)) is amended by striking “corresponds to” and all that follows thereafter through the period and inserting the following: “corresponds to the most recent percentage change in the ECI (relative to the date described in the next sentence), as determined under section 704(a)(1) of the Ethics Reform Act of 1989. The appropriate date under this sentence is the first day of the fiscal year in which such adjustment in the rates of pay under the General Schedule takes effect.”. (b) Effective Date.—This section and the amendments made by this section shall take effect on January 1, 1991.