Page:United States Statutes at Large Volume 110 Part 3.djvu/841

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PUBLIC LAW 104-201—SEPT. 23, 1996 110 STAT. 2571 " (g) ADJUSTMENTS TO ANNUITIES. — "(1) PERIODIC ADJUSTMENTS FOR COST-OF-LIVING. — "(A) INCREASES IN ANNUITIES WHEN RETIRED PAY INCREASED. — Whenever retired pay is increased under section 1401a of this title (or any other provision of law), each gmnuity that is payable under the Plan shall be increased at the same time. "(B) PERCENTAGE OF iNCREASE.The increase shall, in the case of any annuity, be by the same percent as the percent by which the retired pay of the person providing the annuity would have been increased at such time if the person were alive (and otherwise entitled to such pay). " (C) CERTAIN REDUCTIONS TO BE DISREGARDED.— The amount of the increase shall be based on the monthly annuity payable before any reduction under section 1450(c) of this title or under subsection (c)(2). "(2) ROUNDING DOWN.— The monthly amount of an annuity payable under this subchapter, if not a multiple of $1, shall be rounded to the next lower multiple of $1. "(h) ADJUSTMENTS TO BASE AMOUNT. — "(1) PERIODIC ADJUSTMENTS FOR COST-OF-LIVING. — " (A) INCREASES IN BASE AMOUNT WHEN RETIRED PAY INCREASED.— Whenever retired pay is increased under section 1401a of this title (or any other provision of law), the base amount applicable to each participant in the Plan shall be increased at the same time. "(B) PERCENTAGE OF INCREASE.— The increase shall be by the same percent as the percent by which the retired pay of the participant is so increased. "(2) RECOMPUTATION AT AGE 62. — When the retired pay of a person who first became a member of a uniformed service on or after August 1, 1986, and who is a participant in the Plan is recomputed under section 1410 of this title upon the person's becoming 62 years of age, the base amount applicable to that person shall be recomputed (effective on the effective date of the recomputation of such retired pay under section 1410 of this title) so as to be the amount equal to the Eimount of the base amount that would be in effect on that date if increases in such base amount under paragraph (1) had been computed as provided in paragraph (2) of section 1401a(b) of this title (rather than under paragraph (3) of that section). " (3) DISREGARDING OF RETIRED PAY REDUCTIONS FOR RETIREMENT BEFORE 30 YEARS OF SERVICE. —Computation of a member's retired pay for purposes of this section shall be made without regard to any reduction under section 1409(b)(2) of this title. " (i) RECOMPUTATION OF ANNUITY FOR CERTAIN BENE- FICIARIES. — In the case of an annuity under the Plan which is computed on the basis of the retired pay of a person who would have been entitled to have that retired pay recomputed under section 1410 of this title upon attaining 62 years of age, but who dies before attaining that age, the annuity shall be recomputed, effective on the first day of the first month beginning sifter the date on which the member or former member would have attained 62 years of age, so as to be the amount equal to the amount of the Einnuity that would be in effect on that date if increases