Pub. L. 87-793, pt. III, sec. 1102

Sec. 1102. (a) Section 1 of the Civil Service Retirement Act is amended by adding at the end thereof the following new subsection: “(t) The term ‘price index’ shall mean the annual average over a calendar year of the Consumer Price Index (all items—United States city average) published monthly by the Bureau of Labor Statistics.” (b) Such Act is further amended by redesignating section 18 as 19, and by inserting after section 17 the following new section: “cost-of-living adjustment of annuities “Sec. 18. (a) After January 1, 1964, and after each succeeding January 1, the Commission shall determine the per centum change in the price index from the later of 1962 or the year preceding the most recent cost-of-living adjustment to the latest complete year. On the basis of such Commission determination, the following adjustments shall be made: “(1) Effective April 1, 1964, if the change in the price index from 1962 to 1963 shall have equaled a rise of at least 3 per centum, each annuity payable from the fund which has a commencing date earlier than January 2, 1963, shall be increased by the per centum rise in the price index adjusted to the nearest one-tenth of 1 per centum. “(2) Effective April 1 of any year other than 1964 after the price index change shall have equaled a rise of at least 3 per centum, each annuity payable from the fund which has a commencing date earlier than January 2 of the preceding year shall be increased by the per centum rise in the price index adjusted to the nearest one-tenth of 1 per centum. 76 Stat. 870 “(b) Eligibility for an annuity increase under this section shall be governed by the commencing date of each annuity payable from the fund as of the effective date of an increase, except as follows: “(1) Effective from the date of the first increase under this section, an annuity payable from the fund ‘to an annuitant’s survivor (other than a child entitled under section 10(d)), which annuity commenced the day after the annuitant’s death, shall be increased as provided in subsection (a) (1) or (a) (2) if the commencing date of annuity to the annuitant was earlier than January 2 of the year preceding the first increase. “(2) Effective from its commencing date, an annuity payable from the fund to an annuitant’s survivor (other than a child entitled under section 10(d)), which annuity commences the day after the annuitant’s death and after the effective date of the first increase under this section, shall be increased by the total per centum increase the annuitant was receiving under this section at death. “(3) For purposes of computing an annuity which commences after the effective date of the first increase under this section to a child under section 10(d), the items $600, $720, $1,800, and $2,160 appearing in section 10(d) shall be increased by the total per centum increase allowed and in force under this section, and, m case of a deceased annuitant, the items 40 per centum and 50 per centum appearing in section 10(d) shall be increased by the total per centum increase allowed and in force under this section to the annuitant at death. Effective from the date of the first increase under this section, the provisions of this paragraph shall apply as if such first increase were in effect with respect to computation of a child’s annuity under section 10(d) which commenced between January 2 of the year preceding the first increase and the effective date of the first increase. “(c) No increase in annuity provided by this section shall be computed on any additional annuity purchased at retirement by voluntary contributions. “(d) The monthly installment of annuity after adjustment under this section shall be fixed at the nearest dollar.”