Page:United States Statutes at Large Volume 100 Part 1.djvu/721

 PUBLIC LAW 99-348—JULY 1, 1986

100 STAT. 685

of retired pay under subsection (b) after the member becomes entitled to retired pay only by the percent (adjusted to the nearest onetenth 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 member became enti> tied to retired pay.". ., (b) DEFINITIONS.—Such section is further amended— (1) by striking out the second sentence of subsection (a); and (2) by striking out subsection (g) and inserting in lieu thereof I the following: "(g) DEFINITIONS.—In this section: "(1) The term 'price index' means the Consumer Price Index (all items, United States city average) published by the Bureau of Labor Statistics. "(2) The term 'base quarter' means the calendar quarter ending on September 30 of each year. "(3) The term 'base index' means the price index for the base ' quarter for the most recent adjustment under subsection (b). "(4) The term 'retired pay' includes retainer pay. "(h) PRICE INDEX FOR A QUARTER.—For purposes of this section, the price index for a calendar quarter is the arithmetical mean of the price index for the three months comprising that quarter.".

H.; >.^K


 * q a.



(c) TECHNICAL AMENDMENTS.—

(1) Subsection (a) of such section is amended—

,,,J^T t,,(

(A) by inserting "PROHIBITION ON RECOMPUTATION TO REFLECT INCREASES IN BASIC P A Y. — " after "(a)"; and

-f n


 * ^r

(B) by striking out "or retainer". (2) Subsection (f) of such section is amended— (A) by inserting "PREVENTION OF PAY INVERSIONS.—"

after "(f)"; and (B) by striking out "or retainer" each place it appears.

SEC. 103. RESTORAL AT AGE 62 OF RETIRED PAY MULTIPLIER AND COSTOF-LIVING ADJUSTMENTS

Chapter 71 (relating to computation of retired pay) is amended by adding after section 1409 (as added by section 101) the following new section:

.^^,

"§ 1410. Restoral of full retirement amount at age 62 for members lo use 1410. entering on or after August 1, 1986 "(a) GENERAL RULE.—In the case of a member who first became a member of a uniformed service on or after August 1, 1986, and who becomes entitled to retired pay before the age of 62, the retired pay of such member shall be recomputed, effective on the first day of the first month beginning after the member attains 62 years of age, so as to be the amount equal to— "(1) the amount of the member's initial unreduced retired pav, increased by ^; '(2) the percent (adjusted to the nearest one-tenth of 1 percent) by which— '(A) the price index for the most recent base quarter ri attains 62 years of age, exceeds "(B) the price index for the calendar quarter immediately before the date the member first became entitled to retired pay.
 * ,.j ending more than 31 days before the date the member

�