§ 1401a. Adjustment of retired pay and retainer pay to reflect changes in Consumer Price Index
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(a)Prohibition on Recomputation To Reflect Increases in Basic Pay.— Unless otherwise specifically provided by law, the retired pay of a member or former member of an armed force may not be recomputed to reflect any increase in the rates of basic pay for members of the armed forces.
(b)Cost-of-Living Adjustments Based on CPI Increases.—
(1)Increase required.— Effective on December 1 of each year, the Secretary of Defense shall increase the retired pay of members and former members entitled to that pay in accordance with paragraphs
(2)and (3).
(2)Percentage increase.— Except as otherwise provided in this subsection, the Secretary shall increase the retired pay of each member and former member by the percent (adjusted to the nearest one-tenth of 1 percent) by which—
(A)the price index for the base quarter of that year, exceeds
(B)the base index.
(3)Reduced percentage for certain post-august 1, 1986 members.— If the percent determined under paragraph
(2)is greater than 1 percent, the Secretary shall increase the retired pay of each member and former member who first became a member on or after August 1, 1986, and has elected to receive a bonus under section 322 (as in effect before the enactment of the National Defense Authorization Act for Fiscal Year 2008) or section 354 of title 37, by the difference between—
(A)the percent determined under paragraph (2); and
(B)1 percent.
(4)Special rule for paragraph (3).— If in any case in which an increase in retired pay that would otherwise be made under paragraph
(3)is not made by reason of law (other than any provision of this section), then (unless otherwise provided by law) when the next increase in retired pay is made under this subsection, the increase under paragraph
(3)shall be carried out so as to achieve the same net increase in retired pay under that paragraph that would have been the case if that law had not been enacted.
(5)Adjustments for participants in modernized retirement system.— Notwithstanding paragraph (3), if a member or former member participates in the modernized retirement system by reason of section 1409(b)(4) of this title (including pursuant to an election under subparagraph
(B)of that section), the Secretary shall increase the retired pay of such member in accordance with paragraph (2).
(6)Regulations.— Any increase in retired pay under this subsection shall be made in accordance with regulations prescribed by the Secretary of Defense.
(c)First COLA Adjustment for Members With Retired Pay Computed Using Final Basic Pay.—
(1)First adjustment with intervening increase in basic pay.— Notwithstanding subsection
(b)but subject to subsection (f)(3), if a person described in paragraph
(3)becomes entitled to retired pay based on rates of monthly basic pay that became effective after the last day of the calendar quarter of the base index, the retired pay of the member or former member shall be increased on the effective date of the next adjustment of retired pay under subsection
(b)only by the percent (adjusted to the nearest one-tenth of 1 percent) by which—
(A)the price index for the base quarter of that year, exceeds
(B)the price index for the calendar quarter immediately before the calendar quarter in which the rates of monthly basic pay on which the retired pay is based became effective.
(2)First adjustment with no intervening increase in basic pay.— If a person described in paragraph
(3)becomes entitled to retired pay on or after the effective date of an adjustment in retired pay under subsection
(b)but before the effective date of the next increase in the rates of monthly basic pay, the retired pay of the member or former member shall be increased (subject to subsection (f)(3) as applied to other members whose retired pay is computed on the current rates of basic pay in the most recent adjustment under this section), effective on the date the member becomes entitled to that pay, by the percent (adjusted to the nearest one-tenth of 1 percent) by which—
(A)the base index, exceeds
(B)the price index for the calendar quarter immediately before the calendar quarter in which the rates of monthly basic pay on which the retired pay is based became effective.
(3)Members covered.— Paragraphs
(1)and
(2)apply to a member or former member of an armed force who first became a member of a uniformed service before August 1, 1986, and whose retired pay base is determined under section 1406 of this title.
(d)First COLA Adjustment for Members With Retired Pay Computed Using High-Three.— Notwithstanding subsection
(b)but subject to subsection (f)(3), the retired pay of a member or former member of an armed force who first became a member of a uniformed service before August 1, 1986, or on or after August 1, 1986, if the member or former member did not elect to receive a bonus under section 322 (as in effect before January 28, 2008) or section 354 of title 37 and whose retired pay base is determined under section 1407 of this title shall be increased on the effective date of the first adjustment of retired pay under subsection
(b)after the member or former member becomes entitled to retired pay by the percent (adjusted to the nearest one-tenth of 1 percent) equal to the difference between the percent by which—
(1)the price index for the base quarter of that year, exceeds
(2)the price index for the calendar quarter immediately before the calendar quarter during which the member became entitled to retired pay.
(e)Pro Rating of Initial Adjustment.— Notwithstanding subsection
(b)but subject to subsection (f)(3), the retired pay of a member or former member of an armed force who first became a member of a uniformed service on or after August 1, 1986, and elected to receive a bonus under section 322 (as in effect before January 28, 2008) or section 354 of title 37 shall be increased on the effective date of the first adjustment of retired pay under subsection
(b)after the member or former member becomes entitled to retired pay by the percent (adjusted to the nearest one-tenth of 1 percent) equal to the difference between—
(1)the percent by which—
(A)the price index for the base quarter of that year, exceeds
(B)the price index for the calendar quarter immediately before the calendar quarter during which the member became entitled to retired pay; and
(2)one-fourth of 1 percent for each calendar quarter from the quarter described in paragraph (1)(B) to the quarter described in paragraph (1)(A).
If in any case the percent described in paragraph
(2)exceeds the percent determined under paragraph (1), such an increase shall not be made.
(f)Prevention of Pay Inversions.—
(1)Prevention of retired pay inversions for members with retired pay computed using final basic pay.— The monthly retired pay of a member or a former member of an armed force who first became a member of a uniformed service before September 8, 1980, and who initially became entitled to that pay on or after January 1, 1971, may not be less than the monthly retired pay to which he would be entitled if he had become entitled to retired pay at an earlier date based on the grade in which the member is retired, adjusted to reflect any applicable increases in such pay under this section. In computing the amount of retired pay to which such a member or former member would have been entitled on that earlier date, the computation shall be based on his grade, length of service, and the rate of basic pay applicable to him at that time, except that such computation may not be based on a rate of basic pay for a grade higher than the grade in which the member is retired. This subsection does not authorize any increase in the monthly retired pay to which a member was entitled for any period before October 7, 1975.
(2)Prevention of retired pay inversions for members with retired pay computed using high-three.— Subject to subsections
(d)and (e), the monthly retired pay of a member or former member of an armed force who first became a member of a uniformed service on or after September 8, 1980, may not be less, on the date on which the member or former member initially becomes entitled to such pay, than the monthly retired pay to which the member or former member would be entitled on that date if the member or former member had become entitled to retired pay on an earlier date, adjusted to reflect any applicable increases in such pay under this section. However, in the case of a member or former member whose retired pay is computed subject to section 1407(f) of this title, paragraph
(1)(rather than the preceding sentence) shall apply in the same manner as if the member or former member first became a member of a uniformed service before September 8, 1980, but only with respect to a calculation as of the date on which the member or former member first became entitled to retired pay.
(3)Prevention of cola inversions.— The percentage of the first adjustment under this section in the retired pay of any person, as determined under subsection (c)(1), (c)(2), (d), or (e), may not exceed the percentage increase in retired pay determined under subsection (b)(2) that is effective on the same date as the effective date of such first adjustment.
(g)Definitions.— In this section:
(1)The term “price index” means the Consumer Price Index (all items, United States city average) published by the Bureau of Labor Statistics.
(2)The term “base quarter” means the calendar quarter ending on September 30 of each year.
(3)The term “base index” means the price index for the base quarter for the most recent adjustment under subsection (b).
(4)The term “retired pay” includes retainer pay.
(h)Price Index for a Quarter.— For purposes of this section, the price index for a calendar quarter is the arithmetical mean of the price index for the three months comprising that quarter.
(Added Pub. L. 88–132, § 5(g)(1), Oct. 2, 1963, 77 Stat. 213; amended Pub. L. 89–132, § 5(b), Aug. 21, 1965, 79 Stat. 547; Pub. L. 90–207, § 2(a)(1), Dec. 16, 1967, 81 Stat. 652; Pub. L. 91–179, § 1, Dec. 30, 1969, 83 Stat. 837; Pub. L. 94–106, title VIII, § 806, Oct. 7, 1975, 89 Stat. 538; Pub. L. 94–361, title VIII, § 801(a), July 14, 1976, 90 Stat. 929; Pub. L. 94–440, title XIII, § 1306(d)(1), Oct. 1, 1976, 90 Stat. 1462; Pub. L. 96–342, title VIII, § 812(b)(1), Sept. 8, 1980, 94 Stat. 1098;
Pub. L. 98–94, title IX, §§ 921(a)(1), (b), 922(a)(2), Sept. 24, 1983, 97 Stat. 640, 641; Pub. L. 98–525, title XIV, § 1405(26), Oct. 19, 1984, 98 Stat. 2623; Pub. L. 99–348, title I, § 102, July 1, 1986, 100 Stat. 683; Pub. L. 100–180, div. A, title XII, § 1231(21), Dec. 4, 1987, 101 Stat. 1161; Pub. L. 100–224, § 1, Dec. 30, 1987, 101 Stat. 1536; Pub. L. 100–456, div. A, title VI, § 622(a), Sept. 29, 1988, 102 Stat. 1983; Pub. L. 101–189, div. A, title VI, § 651(b)(1), Nov. 29, 1989, 103 Stat. 1460;
Pub. L. 103–66, title II, § 2001, Aug. 10, 1993, 107 Stat. 335; Pub. L. 103–160, div. A, title XI, § 1182(e), Nov. 30, 1993, 107 Stat. 1773; Pub. L. 103–335, title VIII, § 8114A(b)(1), Sept. 30, 1994, 108 Stat. 2648; Pub. L. 103–337, div. A, title VI, § 633(a), Oct. 5, 1994, 108 Stat. 2787; Pub. L. 104–106, div. A, title VI, § 631(a), (c), Feb. 10, 1996, 110 Stat. 364, 365; Pub. L. 104–201, div. A, title VI, §§ 631(a), 632(a), Sept. 23, 1996, 110 Stat. 2549; Pub. L. 106–65, div. A, title VI, §§ 641(b), 643(b)(1), title X, § 1066(a)(10), Oct. 5, 1999, 113 Stat. 662, 663, 771;
Pub. L. 107–314, div. A, title VI, § 633, Dec. 2, 2002, 116 Stat. 2572; Pub. L. 110–181, div. A, title VI, § 661(b)(3), Jan. 28, 2008, 122 Stat. 178; Pub. L. 113–66, div. A, title VI, § 631(a), (b), title X, § 1091(a)(9), Dec. 26, 2013, 127 Stat. 785, 876; Pub. L. 113–67, div. A, title IV, § 403(a), Dec. 26, 2013, 127 Stat. 1186; Pub. L. 113–76, div. C, title X, § 10001(a), (b)(3), Jan. 17, 2014, 128 Stat. 151; Pub. L. 113–82, § 2(a), Feb. 15, 2014, 128 Stat. 1009; Pub. L. 113–291, div. A, title VI, § 623, Dec. 19, 2014, 128 Stat. 3403;
Pub. L. 114–92, div. A, title VI, § 631(c)(1)(B), (d), Nov. 25, 2015, 129 Stat. 844, 845.)
Connections121 cite this · traces to 20
Cited by 121 sections · top 51
public-private-law
- Public Law 114-92National Defense Authorization Act for Fiscal Year 2016
- Public Law 113-66National Defense Authorization Act for Fiscal Year 2014
- Public Law 113-76Consolidated Appropriations Act, 2014
- Public Law 113-67Bipartisan Budget Act of 2013
- Public Law 113-82To ensure that the reduced annual cost-of-living adjustment to the retired pay of members and former members of the Armed Forces under the age of 62 required by the Bipartisan Budget Act of 2013 will not apply to members or former members who first became members prior to January 1, 2014, and for other purposes.Feb
U.S. Code
- § 101Definitions
- § 2001Definitions relating to the system
- § 1408DEFINITIONS.
- § 1448Application of Plan
- § 1401aAdjustment of retired pay and retainer pay to reflect changes in Consumer Price Index
- § 1413aCombat-related special compensation
- § 8340Cost-of-living adjustment of annuities
- § 1450Payment of annuity: beneficiaries
- § 1075TRICARE Select
- § 1447Definitions
- § 414Fees paid by residents
- § 1409Retired pay multiplier
- § 1414Members eligible for retired pay who are also eligible for veterans’ disability compensation for disabilities rated 50 percent or higher: concurrent payment of retired pay and veterans’ disability compensation
- § 1402PROHIBITIONS.
- § 1452Reduction in retired pay
- § 1097Contracts for medical care for retirees, dependents, and survivors: alternative delivery of health care
- § 1451Amount of annuity
- § 1415Lump sum payment of certain retired pay
- § 1402aRecomputation of retired or retainer pay to reflect later active duty of members who first became members after September 7, 1980
- § 1075aTRICARE Prime: cost sharing
- § 354Special pay: 15-year career status bonus for members entering service on or after August 1, 1986
- § 1410Restoral of full retirement amount at age 62 for certain members entering on or after August 1, 1986
- § 1434Kinds of annuities that may be elected
statutes-at-large
- Public Law 88–448
- Public Law 95–581To provide for recalculation of the retired pay of individuals who served as sergeant major of the Marine Corps before December 16, 1967
- Public Law 104–106To authorize appropriations for fiscal year 1996 for military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe personnel strengths for such fiscal year for the Armed Forces, to reform acquisition laws and informa
- Public Law 96–342To authorize appropriations for fiscal year 1981 for procurement of aircraft, missiles, naval vessels, track combat vehicles, torpedoes, and other weapons and for research, development, test, and evaluation for the Armed Forces, to prescribe the authorized personnel strength for each active duty com
- Public Law 99–145To authorize appropriations for military functions of the Department of Defense and to prescribe military personnel levels for the Department of Defense for fiscal year 1986, to revise and improve military compensation programs, to improve defense procurement procedures, to authorize appropriations
- Public Law 96–402To amend title 10
- Public Law 113–66To authorize appropriations for fiscal year 2014 for military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe military personnel strengths for such fiscal year, and for other purposes
- Public Law 97–35To provide for reconciliation pursuant to section 301 of the first concurrent resolution on the budget for the fiscal year 1982
- Public Law 113–67
- Public Law 94–361To authorize appropriations during the fiscal year 1977 for procurement of aircraft, missiles, naval vessels, tracked combat vehicles, torpedoes, and other weapons, and research, development, test, and evaluation for the Armed Forces, and to prescribe the authorized personnel strength for each activ
- Public Law 94–440Making appropriations for the Legislative Branch for the fiscal year ending September 30, 1077, and for other purposes
- Public Law 114–92To authorize appropriations for fiscal year 2016 for military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe military personnel strengths for such fiscal year, and for other purposes
- Public Law 106–65To authorize appropriations for fiscal year 2000 for military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe personnel strengths for such fiscal year for the Armed Forces, and for other purposes
- Public Law 104–201To authorize appropriations for fiscal year 1997 for military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe personnel strengths for such fiscal year for the Armed Forces, and for other purposes
- Public Law 100–456To authorize appropriations for fiscal year 1989 for military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe personnel strengths for such fiscal year for the Armed Forces, and for other purposes
- Public Law 95–397To amend title 10, United States Code, to make certain changes in the Retired Serviceman’s Family Protection Plan and the Survivor Benefit Plan as authorized by chapter 73 of that title, and for other purposes
- Public Law 98–94To authorize appropriations for fiscal year 1984 for the Armed Forces for procurement, for research, development, test, and evaluation, and for operation and maintenance, to prescribe personnel strengths for such fiscal year for the Armed Forces and for civilian employees of the Department of Defens
statute-compilations
- Sec. 10001INAPPLICABILITY OF ANNUAL ADJUSTMENT OF RETIRED PAY FOR MEMBERS OF THE ARMED FORCES UNDER THE AGE OF 62 UNDER THE BIPARTISAN BUDGET ACT OF 2013 TO MEMBERS RETIRED FOR DISABILITY AND TO RETIRED PAY USED TO COMPUTE CERTAIN SURVIVOR BENEFIT PLAN ANNUITIES
- Sec. 631MODERNIZED RETIREMENT SYSTEM FOR MEMBERS OF THE UNIFORMED SERVICES
- Sec. 403ANNUAL ADJUSTMENT OF RETIRED PAY AND RETAINER PAY AMOUNTS FOR RETIRED MEMBERS OF THE ARMED FORCES UNDER AGE 62
- Sec. 631CLARIFICATION OF PREVENTION OF RETIRED PAY INVERSION IN THE CASE OF MEMBERS WHOSE RETIRED PAY IS COMPUTED USING HIGH-THREE
Traces to 20 documents
U.S. Code
- Special pay: 15-year career status bonus for members entering service on or after August 1, 1986§ 354
- Retired pay multiplier§ 1409
- RELATIONSHIP TO OTHER LAWS.§ 1406
- ENCOURAGEMENT OF AGREEMENTS WITH FOREIGN COUNTRIES.§ 1407
- Renumbered § 354]§ 322
- Cost-of-living adjustment of annuities§ 8340
- Rates§ 203
- Contributions§ 8432
- Restoral of full retirement amount at age 62 for certain members entering on or after August 1, 1986§ 1410
- Adjustment of retired pay and retainer pay to reflect changes in Consumer Price Index§ 1401a
- PRESERVATION OF TITLE TO SUNKEN MILITARY CRAFT AND ASSOCIATED CONTENTS.§ 1401
- Pay grades: assignment to; general rules§ 201
- Definitions§ 101
- Transferred§ 403
public-private-law
- National Defense Authorization Act for Fiscal Year 2014Public Law 113-66
- Bipartisan Budget Act of 2013Public Law 113-67
- Consolidated Appropriations Act, 2014Public Law 113-76
- To ensure that the reduced annual cost-of-living adjustment to the retired pay of members and former members of the Armed Forces under the age of 62 required by the Bipartisan Budget Act of 2013 will not apply to members or former members who first became members prior to January 1, 2014, and for other purposes.FebPublic Law 113-82
- Carl Levin and Howard P. ‘Buck’ McKeon National Defense Authorization Act for Fiscal Year 2015Public Law 113-291
- National Defense Authorization Act for Fiscal Year 2016Public Law 114-92
139 references not yet in our index
- Pub. L. 88–132, § 5(g)(1)
- 77 Stat. 213
- Pub. L. 89–132, § 5(b)
- 79 Stat. 547
- Pub. L. 90–207, § 2(a)(1)
- 81 Stat. 652
- Pub. L. 91–179, § 1
- 83 Stat. 837
- Pub. L. 94–106, title VIII, § 806
- 89 Stat. 538
- Pub. L. 94–361, title VIII, § 801(a)
- 90 Stat. 929
- Pub. L. 94–440, title XIII, § 1306(d)(1)
- 90 Stat. 1462
- Pub. L. 96–342, title VIII, § 812(b)(1)
- 94 Stat. 1098
- Pub. L. 98–94, title IX
- 97 Stat. 640
- Pub. L. 98–525, title XIV, § 1405(26)
- 98 Stat. 2623
- Pub. L. 99–348, title I, § 102
- 100 Stat. 683
- Pub. L. 100–180, div. A, title XII, § 1231(21)
- 101 Stat. 1161
- Pub. L. 100–224, § 1
- 101 Stat. 1536
- Pub. L. 100–456, div. A, title VI, § 622(a)
- 102 Stat. 1983
- Pub. L. 101–189, div. A, title VI, § 651(b)(1)
- 103 Stat. 1460
- Pub. L. 103–66, title II, § 2001
- 107 Stat. 335
- Pub. L. 103–160, div. A, title XI, § 1182(e)
- 107 Stat. 1773
- Pub. L. 103–335, title VIII, § 8114A(b)(1)
- 108 Stat. 2648
- Pub. L. 103–337, div. A, title VI, § 633(a)
- 108 Stat. 2787
- Pub. L. 104–106, div. A, title VI, § 631(a)
- 110 Stat. 364
+ 99 more
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§ 1401a
Adjustment of retired pay and retainer pay to reflect changes in Consumer Price Index
U.S.C.×76
Stat.×29
Pub. L.×7
Stat. Comp.×6
Fed. Reg.×3
Pub. L.Pub. L. 88–132, § 5(g)(1)
Stat.77 Stat. 213
Pub. L.Pub. L. 89–132, § 5(b)
Cites 159 · showing 12Cited by 121 across 5 sources