Current through November 30, 2024
Section 831.1743 - Cost-of-living adjustments(a) The phased retirement annuity under § 831.1741 is increased by cost-of-living adjustments in accordance with 5 U.S.C. 8340 .(b) A composite retirement annuity under § 831.1742 is increased by cost-of-living adjustments in accordance with 5 U.S.C. 8340 , except that 5 U.S.C. 8340(c)(1) does not apply.(c)(1) For the purpose of computing the amount of phased retirement annuity used in the computation under § 831.1742(a)(1) , the initial cost-of-living adjustment applied is prorated in accordance with 5 U.S.C. 8340(c)(1) .(2) If the individual enters full retirement status on the same day as the effective date of a cost-of-living adjustment (usually December 1st), that cost-of-living adjustment is applied to increase the phased retirement annuity used in the computation under § 831.1742(a)(1) .(d)(1) For the purpose of computing the actuarial reduction used in the computation under § 831.1742(d)(1) , the initial cost-of-living adjustment applied is prorated in accordance with 5 U.S.C. 8340(c)(1) .(2) If the individual enters full retirement status on the same day as the effective date of a cost-of-living adjustment (usually December 1st), that cost-of-living adjustment is applied to increase the actuarial reduction used in the computation under § 831.1742(d)(1) .(3) When applying each cost-of-living adjustment to the actuarial reduction used in the computation under § 831.1742(d)(1) , the actuarial reduction is rounded up to the next highest dollar.