cost of living adjustments

cost of living adjustments Sec. 1306. (a) Section 8340(b) of title 5, United States Code, is amended by striking out “1 percent plus”. (b) The amendment made by subsection (a) shall apply to any increase in annuities after the date of enactment of this Act. (c) (1) Section 8340(b) of title 5, United States Code, as amended by subsection (a), is amended to read as fol lows: “(b) (1) The Commission shall— “(A) on January 1 of each year, or within a reasonable time thereafter, determine the percent change in the price index published for December of the preceding year over the price index published for June of the preceding year, and “(B) on July 1 of each year, or within a reasonable lime thereafter, determine the percent change in the price index published for June of such year over the price index published for December of the preceding year. “(2) If in any year the percent change determined under either paragraph (1)(A) or (1)(B) indicates a rise in the price index, then— “(A) effective March 1 of such year, in the case of an increase under paragraph (1)(A), each annuity payable from the Fund having a commencing date not later than such March 1 shall be increased by the percent change computed under such paragraph, adjusted to the nearest 1/10 of 1 percent, or “(B) effective September 1 of such year, in the case of an increase under paragraph (1)(B), each annuity payable from the Fund having a commencing date not later than such September 1 shall be increased by the percent change computed under such paragraph, adjusted to the nearest 1/10 of 1 percent.”. (2) The amendment, made by subsection (1) shall apply to any increase in annuities after the date of enactment of this Act, 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, as in effect immediately prior to the date of the enactment of this Act. (d) (1) Section 1401a (b) of title 10, United States Code, is amended to read as follows: “(b) (1) The Secretary of Defense shall— “(A) on January 1 of each year, or within a reasonable time thereafter, determine the percent change in the index published for December of the preceding year over the index published for June of the preceding year; and 90 STAT. 1463 “(B) on July 1 of each year, or within a reasonable time thereafter, determine the percent change in the index published for June of such year over the index published for December of the previous year. “(2) If in any year the percent change determined under either paragraph (1)(A) or (1)(B) indicates a rise in the index, then— “(A) effective March 1 of such year, in the case of an increase under paragraph (1)(A), the retired pay and retainer pay of members and former members of the armed forces who become entitled to that pay before such March 1 shall be increased by the percent change computed under such paragraph, adjusted to the nearest 1/10 of 1 percent; and “B) effective September 1 of such year, in the case of an increase under paragraph (1)(B), the retired pay and retainer pay of members and former members of the armed forces who become entitled to that nay before such September 1 shall be increased by the percent change computed under such paragraph, adjusted to the nearest. 1/10 of 1 percent.”. (2) The amendment made by subsection (1) shall apply to any increase in retired pay or retainer pay after the date of enactment of this Act, except that with respect to the first date after the date of enactment of this Act on which the Secretary of Defense is to determine a percent change, such percent change shall be determined by computing the change in the index published for the month immediately preceding such first date over the index for the last month preceding the date of enactment, of this Act used as the basis for the most recent adjustment of retired pay and retainer pay under section 1401a (b) of title 10, United States Code, as in effect immediately prior to the date of enactment of this Act, (e) (1) Section 882(b) of the Foreign Service Act of 1946 (22 U.S.C. 1121 (b)), is amended to read as follows: “(b) (1) The Secretary shall— “(A) on January 1 of each year, or within a reasonable time thereafter, determine the percent change in the price index published for December of the preceding year over the price index published for June of the preceding year, and “(B) on July 1 of each year, or within a reasonable time thereafter, determine the percent change in the price index published for June of such year over the price index published for December of the preceding year. “(2) If in any year the percent change determined under either paragraph (1)(A) or (1)(B) indicates a rise in the price index, then— “(A) effective March 1 of such year, in the case of an increase under paragraph (1)(A), each annuity payable from the Fund having a commencing date not later than such March 1 shall be increased by the percent change computed under such paragraph, adjusted to the nearest 1/10 of 1 percent, or “(B) effective September 1 of such year, in the case of an increase under paragraph (1)(B), each annuity payable from the Fund having a commencing date not later than such September 1 shall be increased by the percent change computed under such paragraph adjusted to the nearest 1/10 of 1 percent.”, (2) The amendment made by subsection (1) shall apply to any increase in annuities after the date of enactment of this Act, except that with respect to the first date after the date of enactment of this Act on which the Secretary is to determine a percent change, such percent change shall be determined by computing the change in the 90 STAT. 1464price index published for the month immediately preceding such first ate 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 increase under section 882(b) of the Foreign Service Act of 1946 (22 U.S.C. 1121(b)), as in effect immediately prior to the date of enactment of this Act. This Act may be cited as the “Legislative Branch Appropriation Act, 1977”.