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B-205366 1 (1981-12-22)

handle is hein.gao/gaobacfss0001 and id is 1 raw text is: December 22, 1981 The Honorable Marjorie S.. Holt House of Representatives Dear Mrs. Holt: This As in reply to your communication of Octobet 20, 1981, with enclosures, requesting a report on matters mentioned in a let er to d ' .. .. eVsin'concerns.,the.possib I.e .atp, .cton situation of our decision B-189029, September 2, 1980 (59 Comb. Gen. 691), involving military' retired pay. It appears from letter that he is a civilian. employee. of e Fedelra Gvern-ent who is now considering retiring and he is concerned that his retlie- ment annuity will be less than if he had retliredlast ear (the so-called retired pay inversion). If is a civilian employee, the decision in question, 59 Comp. Gen.. 691, copy enclosed, would not be applicable to him. That decision construes certain of the provisions con-- tained in 10 U.S.C. 1401a, which concern military retired pay computations in relation tp changes in the Consumer Price Index. .That decision applies only to service mem- bets who remain on active duty after becoming eligible to retire; it does not apply to civilian employees. Under the provisions oftl0 U.S.C..1401a discussed in that decision, generally, military members who remain on active duty after they become eligible for retirement, when they later retire, are permitted to compute their retired pay on the pay rates which were in effect on their earlier retirement eligibility date... Subsequent Consumer Price Index increases are then added to the. retired pay computa- tion thereby prev-enting the retired service member from receiving a lwer retired pay rate than if he had retired earl-iet and, thus, avoiding the retired pay inversion.0 The laws upon which that'decision was based do not apply to retirement annuities of Civilian employees of the Federal Government. The provisions of law governing adjustments of Civil Service annuities to reflect Consumer Price Index increases are contained in.5 U.S.C, 8340(c). Since the administration of that statute is a matter within the jurisdiction of the Office of Personnel Management, not our Office, may contact that COMPTROLLER GENERAL OF THE UNITUO STATES WASH4INGTON D.C. =M B-205366 4 kl

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