US Code

Public Law 119-88 (05/04/2026)

50 U.S.C. § 2131

Cost-of-living adjustment of annuities

(a)

In general

Each annuity payable from the fund shall be adjusted as follows:
(1)
section 8340(b) of title 5 Each cost-of-living annuity increase under this section shall be identical to the corresponding percentage increase under .
(2)
section 8340(b) of title 5 A cost-of-living increase made under paragraph (1) shall become effective under this section on the effective date of each such increase under . Except as provided in subsection (b), each such increase shall be applied to each annuity payable from the fund which has a commencing date not later than the effective date of the increase.
(b)

Eligibility

Eligibility for an annuity increase under this section shall be 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 cost-of-living increase (if any) made under subsection (a) to an annuity which is payable from the fund to a participant who retires, to the surviving spouse, former spouse, or previous spouse of a participant who dies in service, or to the surviving spouse, former spouse, previous spouse, or insurable interest designee of a deceased annuitant whose annuity has not been increased under this subsection or subsection (a), shall be equal to the product (adjusted to the nearest ⅒ of one percent) of—
(A)
112 ⁄ of the applicable percent change computed under subsection (a), 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 surviving spouse, former spouse, previous spouse, or insurable interest designee of a deceased annuitant whose annuity has not been so increased, since the annuity was first payable to the deceased annuitant.
(2)
section 2031(d) of this title Effective from its commencing date, an annuity payable from the fund to an annuitant’s survivor (other than a child entitled to an annuity under ) shall be increased by the total percentage increase the annuitant was receiving under this section at death.
(3)
section 2031(d) of this titlesection 2031(d)(3) of this title For purposes of computing the annuity of a child under that commences after , the dollar amounts specified in shall each be increased by the total percentage increases allowed and in force under this section on or after such day and, in the case of a deceased annuitant, the percentages specified in that section shall be increased by the total percent allowed and in force to the annuitant under this section on or after such day.
(c)

Limitation

An annuity increase provided by this section may not be computed on any additional annuity purchased at retirement by voluntary contributions.

(d)

Rounding to next lower dollar

The monthly annuity installment, after adjustment under this section, shall be rounded to the next lowest dollar, except that such installment shall, after adjustment, reflect an increase of at least $1.

(e)

Limitation on maximum amount of annuity

(1)

In general

An annuity shall not be increased by reason of an adjustment under this section to an amount which exceeds the greater of—
(A)
the maximum pay payable for GS–15 30 days before the effective date of the adjustment under this section; or
(B)
the final pay (or average pay, if higher) of the participant with respect to whom the annuity is paid, increased by the overall annual average percentage adjustments (compounded) in the rates of pay of the General Schedule under subchapter I of chapter 53 of title 5 during the period—
(i)
beginning on the date on which the annuity commenced (or, in the case of a survivor of the retired participant, the date on which the participant’s annuity commenced), and
(ii)
ending on the effective date of the adjustment under this section.
(2)

“Pay” defined

For purposes of paragraph (1), the term “pay” means the rate of salary or basic pay as payable under any provision of law, including any provision of law limiting the expenditure of appropriated funds.

Pub. L. 88–643, title II, § 291Pub. L. 102–496, title VIII, § 802106 Stat. 3240 Pub. L. 103–178, title II, § 202(a)(14)107 Stat. 2027 (, as added , , ; amended , , .)

Editorial Notes

References in Text

section 5332 of Title 5GS–15, referred to in subsec. (e)(1)(A), probably means GS–15 of the General Schedule which is set out under , Government Organization and Employees.

Prior Provisions

section 291 of Pub. L. 88–64378 Stat. 1054 Pub. L. 90–53982 Stat. 902 Pub. L. 91–185, § 583 Stat. 849 Pub. L. 93–210, § 1(a)87 Stat. 908 Pub. L. 94–361, title VIII, § 801(b)90 Stat. 929 Pub. L. 99–335, title V, § 501(3)100 Stat. 622 section 403 of this titlePub. L. 88–643section 802 of Pub. L. 102–496A prior , title II, , ; , , ; , , ; , , ; , , ; Ex. Ord. No. 12326, § 4, , 46 F.R. 48889; Ex. Ord. No. 12443, §§ 6, 14, , 48 F.R. 44752, 44754; , , , related to cost-of-living adjustment of annuities and was set out as a note under prior to the general amendment of by .

Amendments

Pub. L. 103–178section 2052(c) of this titlesection 2031(d) of this title1993—Subsec. (b)(2). struck out “or ” after “”.

Statutory Notes and Related Subsidiaries

Effective Date of 1993 Amendment

Pub. L. 103–178section 202(b) of Pub. L. 103–178section 2001 of this titleAmendment by effective , see , set out as a note under .

Effective Date

section 805 of Pub. L. 102–496section 2001 of this titleSection effective on first day of fourth month beginning after , see , set out as a note under .

Delay in Cost-of-Living Adjustments During Fiscal Years 1994, 1995, and 1996

section 11001 of Pub. L. 103–66section 8340 of Title 5Any cost-of-living increase scheduled to take effect during fiscal year 1994, 1995, or 1996 under this section delayed until first day of third calendar month after date such increase would otherwise take effect, see , set out as a note under , Government Organization and Employees.