PUBLIC LAW 101-194—NOV. 30, 1989 103 STAT. 1769 SEC 704. REVISION IN METHOD BY WHICH ANNUAL PAY ADJUSTMENTS 5 USC 5318 note. FOR CERTAIN EXECUTIVE, LEGISLATIVE, AND JUDICIAL POSL TIONS ARE TO BE MADE. (a) PERCENT CHANGE IN THE ElBfPLOYifENT CojST INDEX.— (1) METHOD FOR CX>MPUTING 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 Ed", 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 (ID 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)(ID, and (iii) multiplying the quotient under clause (ii) by 100, except that no percentage change determined under this paragraph shall be— (1) less than zero; or (ID greater than 5 percent. (2) PROVISIONS THROUGH WHICH NEW METHOD IS TO BE IMPLE- MENTED.— (A) AMENDMENT TO TITLES 3, 5, AND 28 OF THE UNITED STATES CODE.—Section 104 of title 3, United States (Dode, 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)(l) of the Ethics Reform Act of 1989. The appro- priate 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 "cor- responds 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)(l) of the Ethics Reform Act of 1989. The appro- priate 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. — Th is section and the amendments made by this section shall take effect on January 1, 1991.
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