Page:United States Statutes at Large Volume 100 Part 1.djvu/720

 100 STAT. 684

PUBLIC LAW 99-348—JULY 1, 1986

striking out subsections (b), (c), and (d) and inserting in lieu thereof the following: "(b) CosT-oF-LiviNG ADJUSTMENTS BASED ON C P I INCREASES.—

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"(1) IN GENERAL.—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) PRE-AUGUST 1, 1986 MEMBERS.—The Secretary shall increase the retired pay of each member and former member who first became a member of a uniformed service before August 1, 1986, 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 gj ^ "(B) the base index. "(3) 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 who first became a member on or after August 1, 1986, by the difference between— "(A) the percent determined under paragraph (2); and "(B) 1 percent. "(4) REGULATIONS.—Any increase in retired pay under this subsection shall be made in accordance with regulations prescribed by the Secretary of Defense. "(c) RULE FOR FIRST ADJUSTMENT AFTER RETIREMENT WITH INTERVENING INCREASE IN BASIC PAY.—Notwithstanding subsection (b), if

a member or former member of an armed force who first became a member of a uniformed service before August 1, 1986, 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— "(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 in which the rates of monthly basic pay on which the retired pay is based became effective. "(d) RULE FOR FIRST ADJUSTMENT AFTER RETIREMENT WITH N O INTERVENING INCREASE IN BASIC PAY.—If a member or former

member of an armed force who first became a member of a uniformed service before August 1, 1986, 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, 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— "(1) the base index, exceeds "(2) 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. "(e) PRO RATING

OF INITIAL

ADJUSTMENT.—Notwithstanding

subsection (b), the retired pay of a member of an armed force who first became a member of a uniformed service on or after August 1, 1986, shall be increased on the effective date of the first adjustment

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