(a) OPM converts the price index plus the adjustment factor to a COLA rate as shown in the following table: ------------------------------------------------------------------------
COLA rate subject to
Price index plus adjustment factor paragraph (b) of this
section------------------------------------------------------------------------Equal to or greater than 124.50........... 25 percent.Equal to or greater than 102.00 but less Price index plus the
than 124.50. adjustment factor, minus
100, expressed to the
nearest whole percent.Less than 102.00.......................... 0 percent.------------------------------------------------------------------------
(b) This section is applicable on an area-by-area basis beginning with the effective date of the results of the first survey conducted in each area.
(c) OPM may reduce the COLA rate in any area by no more than 1 percentage point in any 12-month period. Any reduction in the COLA rate for any COLA area cannot be effective until the effective date of the first survey conducted in Hawaii and Guam and CNMI under these regulations.