Page:United States Statutes at Large Volume 80 Part 1.djvu/612

 576

PUBLIC LAW 89.554-SEPT. 6, 1966

[80 STAT.

the death of the retired employee or Member. The annuity of the employee or Member making the election is reduced by 10 percent, and by 5 percent for each full 5 years the individual named is younger than the retiring employee or Member. However, the total reduction may not exceed 40 percent. (k) The annuity computed under subsections (a) - ( j) of this section for an employee who is a citizen of the United States is increased by $36 for each year of service in the employ of— (1) the Alaska Engineering Commission, or The Alaska Railroad, in Alaska between March 12, 1914, and July 1, 1923; or (2) the Isthmian Canal Commission, or the Panama Railroad Company, on the Isthmus of Panama between May 4, 1904, and April 1, 1914. § 8340. Cost-of-living adjustment of annuities (a) After January 1 of each year the Civil Service Commission shall determine the percent change in the price index from the later of 1962 or the year preceding the most recent cost-of-living adjustment to the latest complete year. On the basis of this determination, and effective April 1 of any year after the»price index change equals a rise of at least 3 percent, each annuity payable from the F u n d which has a commencing date earlier than January 2 of the preceding year shall be increased by the percent rise in the price index adjusted to the nearest i/io of 1 percent. (b) 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) Effective from the date of the first increase under this section, an annuity payable from the Fund to an annuitant's survivor (except a child entitled under section 8341(e) of this title), which annuity commenced the day after the death of the annuitant, shall be increased as provided by subsection (a) of this section if the commencing date of annuity to the annuitant was earlier than January 2 of the year preceding the first increase. (2) Effective from its commencing date, an annuity payable from the F u n d to an annuitant's survivor (except a child entitled under section 8341(e) of this title), which annuity commences the day after the death of the annuitant and after the effective date of the first increase under this section, shall be increased by the total percent increase the annuitant was receiving under this section at death. (3) For the purpose of computing an annuity which commences after the effective date of the first increase under this section to a child under section 8341(e) of this title, the items $600, $720, $1,800, and $2,160 appearing in section 8341(e) of this title shall be increased by the total percent increase allowed and in force under this section, and, in case of a deceased annuitant, the items 40 percent and 50 percent appearing in section 8341(e) of this title shall be increased by the total percent increase allowed and in force under this section to the annuitant at death. Effective from the date of the first increase under this section, this paragraph applies as if the first increase were in effect with respect to computation of the annuity of a child under section 8341(e) of this title which commenced l)etween January 2 of the year preceding the first increase and the effective date of the first increase.

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