(a) The phased retirement annuity under Sec. 831.1741 is increased by cost-of-living adjustments in accordance with 5 U.S.C. 8340.
(b) A composite retirement annuity under Sec. 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 Sec. 831.1742(a)(1), the initial cost-of-living adjustment applied is prorated in accordance with 5 U.S.C. 8340(c)(1).
(1) For the purpose of computing the amount of phased retirement annuity used in the computation under Sec. 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 Sec. 831.1742(a)(1).
(d)(1) For the purpose of computing the actuarial reduction used in the computation under Sec. 831.1742(d)(1), the initial cost-of-living adjustment applied is prorated in accordance with 5 U.S.C. 8340(c)(1).
(1) For the purpose of computing the actuarial reduction used in the computation under Sec. 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 Sec. 831.1742(d)(1).
(3) When applying each cost-of-living adjustment to the actuarial reduction used in the computation under Sec. 831.1742(d)(1), the actuarial reduction is rounded up to the next highest dollar.
Opportunity of a Phased Retiree To Pay a Deposit or Redeposit for
Civilian or Military Service