Page:United States Statutes at Large Volume 100 Part 1.djvu/609

 PUBLIC LAW 99-335—JUNE 6, 1986

100 STAT. 573

"(3) the term 'percent change in the price index', as used with respect to a year, means the percentage derived by— "(A) reducing— "(i) the price index for the base quarter of such year, by (ii) the price index for the base quarter of the preceding year in which an adjustment under this subsection was made; "(B) dividing the difference under subparagraph (A) by the price index referred to in subparagraph (A)(ii); and "(C) multiplying the quotient under subparagraph (B) by 100. "0))(1) Except as provided in subsection (c), effective December 1 of any year in which an adjustment under this subsection is to be made, as determined under paragraph (2), each annuity payable from the Fund under this chapter (other than an annuity under section 8443) having a commencing date not later than such December 1 shall be adjusted as follows: "(A) If the percent change in the price index for the year does not exceed 3 percent, each annuity subject to adjustment under this subsection shall be increased by the lesser of— "(i) the percent change in the price index (rounded to the nearest one-tenth of 1 percent); or "(ii) 2 percent. "(B) If the percent change in the price index for the year exceeds 3 percent, each annuity subject to adjustment under this subsection shall be increased by the excess of— "(i) the percent change in the price index (rounded to the nearest one-tenth of 1 percent), over "(ii) 1 percent. "(2) An adjustment under this subsection shall be made in a year only if the price index for the base quarter of such year exceeds the price index for the base quarter of the preceding year in which an adjustment under this subsection was made. '(3) An annuity under this chapter shall not be subject to adjustment under section 8340. "(c) Eligibility for an annuity increase under this section is governed by the commencing date of each annuity payable from the Fund as of the effective date of an increase, except as follows: "(1) The first increase (if any) made under subsection (b) to an annuity which is payable from the Fund to an annuitant or survivor (other than a child under section 8443) whose annuity has not been increased under this subsection or subsection (b) shall be equal to the product (adjusted to the nearest one-tenth of 1 percent) of— "(A) one-twelfth of the applicable percent change computed under subsection (b), multiplied by "(B) the number of months (not to exceed 12 months, counting any portion of a month as a month)— "(i) for which the annuity was payable from the Fund before the effective date of the increase; or "(ii) in the case of a survivor of a deceased annuitant whose annuity has not been so increased, since the annuity was first payable to the deceased annuitant. "(2) Effective from its commencing date, an annuity payable from the Fund to an annuitant's survivor (other than a widow or widower whose annuity is computed under section 8442(g) or

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