Contents
- (a) Prohibition on Recomputation To Reflect Increases in Basic Pay.—3 changes
- (b) Cost-of-Living Adjustments Based on CPI Increases.—20 changes
- (c) First COLA Adjustment for Members With Retired Pay Computed Using Final Basic Pay.—4 changes
- (d) First COLA Adjustment for Members With Retired Pay Computed Using High-Three.—2 changes
- (e) Pro Rating of Initial Adjustment.—5 changes
- (f) Prevention of Pay Inversions.—11 changes
- (g) Definitions.—1 change
- (h) Price Index for a Quarter.—
(b)
(1)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)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)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)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)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)Any increase in retired pay under this subsection shall be made in accordance with regulations prescribed by the Secretary of Defense.
United States Government work; public domain under 17 U.S.C. § 105.