B-170104, SEP 30, 1970, 50 COMP GEN 232

B-170104: Sep 30, 1970

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THE CONSUMER PRICE INDEX CHANGES SHOULD BE REFLECTED BY INCREASING RETIRED PAY BY ONLY THE PERCENT THAT THE APPLICABLE BASE INDEX EXCEEDS THE INDEX FOR THE CALENDAR MONTH IMMEDIATELY PRECEDING THE MONTH IN WHICH THE ACTIVE DUTY PAY RATE UPON WHICH RETIRED PAY IS BASED BECAME EFFECTIVE. 48 COMP. 1970: FURTHER REFERENCE IS MADE TO LETTER DATED JUNE 17. THREE ALTERNATE SUGGESTED METHODS OF COMPUTATION ARE INCORPORATED IN THE QUESTION FOR DECISION AS PRESENTED IN COMMITTEE ACTION NO. 442 OF THE MILITARY PAY AND ALLOWANCE COMMITTEE. THAT QUESTION IS AS FOLLOWS: WHEN RECOMPUTING RETIRED PAY UNDER THE PROVISIONS OF 10 U.S.C. 1402(A) FOR A MEMBER WHO HAS SERVED ON ACTIVE DUTY FOR 2 YEARS SUBSEQUENT TO RETIREMENT.

B-170104, SEP 30, 1970, 50 COMP GEN 232

PAY - RETIRED - INCREASES - COST-OF-LIVING INCREASES - ACTIVE DUTY RECALL IN RECOMPUTING RETIRED PAY UNDER 10 U.S.C. 1401A AND 1402(A) FOR A MEMBER OF THE UNIFORMED SERVICES WHO SERVED ON ACTIVE DUTY FOR 2 YEARS SUBSEQUENT TO RETIREMENT, THE CONSUMER PRICE INDEX CHANGES SHOULD BE REFLECTED BY INCREASING RETIRED PAY BY ONLY THE PERCENT THAT THE APPLICABLE BASE INDEX EXCEEDS THE INDEX FOR THE CALENDAR MONTH IMMEDIATELY PRECEDING THE MONTH IN WHICH THE ACTIVE DUTY PAY RATE UPON WHICH RETIRED PAY IS BASED BECAME EFFECTIVE. 48 COMP. GEN. 398 AND B 166335, JUNE 4, 1969, MODIFIED.

TO THE SECRETARY OF DEFENSE, SEPTEMBER 30, 1970:

FURTHER REFERENCE IS MADE TO LETTER DATED JUNE 17, 1970, FROM THE ASSISTANT SECRETARY OF DEFENSE (COMPTROLLER) REQUESTING A DECISION AS TO THE PROPER METHOD TO BE USED IN RECOMPUTING RETIRED PAY UNDER 10 U.S.C. 1401A AND 1402(A) FOR A MEMBER OF THE ARMED FORCES WHO HAS SERVED ON ACTIVE DUTY FOR 2 YEARS SUBSEQUENT TO RETIREMENT. THREE ALTERNATE SUGGESTED METHODS OF COMPUTATION ARE INCORPORATED IN THE QUESTION FOR DECISION AS PRESENTED IN COMMITTEE ACTION NO. 442 OF THE MILITARY PAY AND ALLOWANCE COMMITTEE. THAT QUESTION IS AS FOLLOWS:

WHEN RECOMPUTING RETIRED PAY UNDER THE PROVISIONS OF 10 U.S.C. 1402(A) FOR A MEMBER WHO HAS SERVED ON ACTIVE DUTY FOR 2 YEARS SUBSEQUENT TO RETIREMENT, WHICH OF THE FOLLOWING METHODS SHOULD BE USED IN APPLYING CONSUMER PRICE INDEX (CPI) INCREASES AUTHORIZED BY 10 U.S.C. 1401A?

A. RETIRED PAY INCREASED BY ALL CPI ADJUSTMENTS WHICH HAVE BEEN AUTHORIZED UNDER 10 U.S.C. 1401AB) SUBSEQUENT TO THE EFFECTIVE DATE OF THE ACTIVE DUTY PAY RATE UPON WHICH THE RECOMPUTED RETIRED PAY IS BASED.

B. RETIRED PAY INCREASED BY ONLY THE PERCENT THAT THE APPLICABLE BASE INDEX EXCEEDS THE INDEX FOR THE CALENDAR MONTH IMMEDIATELY PRECEDING THE MONTH IN WHICH THE ACTIVE DUTY PAY RATE UPON WHICH RETIRED PAY IS BASED BECAME EFFECTIVE.

C. RETIRED PAY RECOMPUTED UPON THE APPLICABLE ACTIVE DUTY BASIC PAY RATE ONLY WITHOUT INCREASING SUCH PAY BY ANY CPI INCREASE.

SUBSECTIONS (B), (C), (D) AND (E) OF 10 U.S.C. 1401A (AS AMENDED, EFFECTIVE OCTOBER 31, 1969, BY PUBLIC LAW 91-179) ARE AS FOLLOWS:

(B) THE SECRETARY OF DEFENSE SHALL DETERMINE MONTHLY THE PERCENT BY WHICH THE INDEX HAS INCREASED OVER THAT USED AS THE BASIS (BASE INDEX) FOR THE MOST RECENT ADJUSTMENT OF RETIRED PAY AND RETAINER PAY UNDER THIS SUBSECTION. IF THE SECRETARY DETERMINES THAT, FOR THREE CONSECUTIVE MONTHS, THE AMOUNT OF THE INCREASE IS AT LEAST 3 PER CENTUM OVER THE BASE INDEX, THE RETIRED PAY AND RETAINER PAY OF MEMBERS AND FORMER MEMBERS OF THE ARMED FORCES WHO BECOME ENTITLED TO THAT PAY BEFORE THE FIRST DAY OF THE THIRD CALENDAR MONTH BEGINNING AFTER THE END OF THOSE THREE MONTHS SHALL, EXCEPT AS PROVIDED IN SUBSECTION (C), BE INCREASED, EFFECTIVE ON THAT DAY, BY THE PER CENTUM OBTAINED BY ADDING 1 PER CENTUM AND THE HIGHEST PER CENTUM OF INCREASE IN THE INDEX DURING THOSE MONTHS, ADJUSTED TO THE NEAREST ONE-TENTH OF 1 PER CENTUM.

(C) NOTWITHSTANDING SUBSECTION (B), IF A MEMBER OR FORMER MEMBER OR AN ARMED FORCE BECOMES ENTITLED TO RETIRED PAY OR RETAINER PAY BASED ON RATES OF MONTHLY BASIC PAY PRESCRIBED BY SECTION 203 OF TITLE 37 THAT BECAME EFFECTIVE AFTER THE LAST DAY OF THE MONTH OF THE BASE INDEX, HIS RETIRED PAY OR RETAINER PAY SHALL BE INCREASED ON THE EFFECTIVE DATE OF THE NEXT ADJUSTMENT OF RETIRED PAY AND RETAINER PAY UNDER SUBSECTION (B) ONLY BY THE PERCENT (ADJUSTED TO THE NEAREST ONE-TENTH OF 1 PERCENT) THAT THE NEW BASE INDEX EXCEEDS THE INDEX FOR THE CALENDAR MONTH IMMEDIATELY BEFORE THAT IN WHICH THE RATES OF MONTHLY BASIC PAY ON WHICH HIS RETIRED PAY OR RETAINER PAY IS BASED BECAME EFFECTIVE.

(D) IF A MEMBER OR FORMER MEMBER OF AN ARMED FORCE BECOMES ENTITLED TO RETIRED PAY OR RETAINER PAY ON OR AFTER THE EFFECTIVE DATE OF AN ADJUSTMENT OF RETIRED PAY AND RETAINER PAY UNDER SUBSECTION (B) BUT BEFORE THE EFFECTIVE DATE OF THE NEXT INCREASE IN THE RATES OF MONTHLY BASIC PAY PRESCRIBED BY SECTION 203 OF TITLE 37, HIS RETIRED PAY OR RETAINER PAY SHALL BE INCREASED, EFFECTIVE ON THE DATE HE BECOMES ENTITLED TO THAT PAY, BY THE PERCENT (ADJUSTED TO THE NEAREST ONE-TENTH OF 1 PERCENT) THAT THE BASE INDEX EXCEEDS THE INDEX FOR THE CALENDAR MONTH IMMEDIATELY BEFORE THAT IN WHICH THE RATES OF MONTHLY BASIC PAY ON WHICH HIS RETIRED PAY OR RETAINER PAY IS BASED BECAME EFFECTIVE.

(E) NOTWITHSTANDING SUBSECTIONS (C) AND (D), THE ADJUSTED RETIRED PAY OR RETAINER PAY OF A MEMBER OR FORMER MEMBER OF AN ARMED FORCE RETIRED ON OR AFTER OCTOBER 1, 1967, MAY NOT BE LESS THAN IT WOULD HAVE BEEN HAD HE BECOME ENTITLED TO RETIRED PAY OR RETAINER PAY BASED ON THE SAME PAY GRADE, YEARS OF SERVICE FOR PAY, YEARS OF SERVICE FOR RETIRED OR RETAINER PAY PURPOSES, AND PERCENT OF DISABILITY, IF ANY, ON THE DAY BEFORE THE EFFECTIVE DATE OF THE RATES OF MONTHLY BASIC PAY ON WHICH HIS RETIRED PAY OR RETAINER PAY IS BASED.

UNDER THE PROVISIONS OF SUBSECTION (A) OF SECTION 1402, TITLE 10, U.S.C. (AS AMENDED BY THE ACT OF OCTOBER 2, 1963, PUBLIC LAW 88-132, 77 STAT. 210, 214) A MEMBER OF AN ARMED FORCE WHO HAS BECOME ENTITLED TO RETIRED PAY AND WHO THEREAFTER SERVES ON ACTIVE DUTY, IS ENTITLED UPON RELEASE FROM THAT ACTIVE DUTY TO RECOMPUTE HIS RETIRED PAY BY MULTIPLYING THE MONTHLY BASIC PAY (SUBJECT TO FOOTNOTE 1) OF THE GRADE IN WHICH HE WOULD BE ELIGIBLE TO RETIRE IF HE WERE RETIRING UPON THAT RELEASE FROM ACTIVE DUTY, BY 2-1/2 PERCENT FOR EACH OF THE YEARS OF SERVICE CREDITED TO HIM IN COMPUTING RETIRED PAY, PLUS HIS YEARS OF ACTIVE SERVICE AFTER BECOMING ENTITLED TO RETIRED PAY, BUT NOT TO EXCEED 75 PERCENT OF THE PAY UPON WHICH THE COMPUTATION IS BASED. FOOTNOTE 1 OF SECTION 1402A READS AS FOLLOWS:

1FOR A MEMBER WHO HAS BEEN ENTITLED, FOR A CONTINUOUS PERIOD OF AT LEAST TWO YEARS, TO BASIC PAY UNDER THE RATES OF BASIC PAY IN EFFECT UPON THAT RELEASE FROM ACTIVE DUTY, COMPUTE UNDER THOSE RATES. FOR A MEMBER WHO HAS BEEN ENTITLED TO BASIC PAY FOR A CONTINUOUS PERIOD OF AT LEAST TWO YEARS UPON THAT RELEASE FROM ACTIVE DUTY, BUT WHO IS NOT COVERED BY THE PROCEDING SENTENCE, COMPUTE UNDER THE RATES OF BASIC PAY REPLACED BY THOSE IN EFFECT UPON THAT RELEASE FROM ACTIVE DUTY. FOR ANY OTHER MEMBER, COMPUTE UNDER THE RATES OF BASIC PAY UNDER WHICH THE MEMBER'S RETIRED PAY OR RETAINER PAY WAS COMPUTED WHEN HE ENTERED ON THAT ACTIVE DUTY.

UNDER SUBSECTIONS (B) AND (C) OF SECTION 1402 OF TITLE 10, A MEMBER WHO INCURS A PHYSICAL DISABILITY WHILE SERVING ON ACTIVE DUTY AFTER RETIREMENT MAY ELECT, AS PROVIDED IN SUBSECTION (D), TO RECEIVE EITHER (1) THE RETIRED PAY TO WHICH HE BECAME ENTITLED WHEN RETIRED, INCREASED BY ANY APPLICABLE ADJUSTMENTS IN THAT PAY UNDER SECTION 1401A OF TITLE 10 AFTER HE INITIALLY BECAME ENTITLED TO THAT PAY, OR (2) RETIRED PAY COMPUTED AS THERE STATED ON THE HIGHEST MONTHLY BASIC PAY THAT HE RECEIVED WHILE ON ACTIVE DUTY AFTER RETIREMENT.

THE COMMITTEE ACTION SETS OUT EXAMPLES OF RETIRED PAY WHICH WOULD RESULT FROM THE APPLICATION OF EACH OF THE THREE METHODS QUOTED ABOVE AND STATES THAT THE RETIRED PAY SHOWN IN THE EXAMPLES IS COMPUTED ON THE JULY 1, 1968, BASIC PAY RATES. FOR COMPARISON PURPOSES, THERE ARE ALSO SHOWN EXAMPLES OF ENTITLEMENT OF MEMBERS WHO RECEIVE RETIRED PAY BASED ON THE JULY 1, 1968, BASIC PAY RATES BY VIRTUE OF STATUTES OTHER THAN 10 U.S.C. 1402(A). THE FOLLOWING EXAMPLES IN THE COMMITTEE ACTION ASSUME A MEMBER IN PAY GRADE E-7 WITH 24 YEARS OF SERVICE CREDITABLE AS A MULTIPLIER:

MEMBER INITIALLY RETIRED 1 JANUARY 1969:

1 JAN 69 $530.40 X 60% $318.24

1 FEB 69 318.24 2.1% 324.92

1 NOV 69 324.92 5.3% 342.14

CURRENT RETIRED PAY $342.14

MEMBER RELEASED FROM ACTIVE DUTY 1 JANUARY 1969 AND ENTITLED TO

RECOMPUTATION OF RETIRED PAY UNDER 10 U.S.C. 1402(D)

1 JAN 69 $530.40 X 60% $318.24

1 FEB 69 318.24 2.1% 324.92

1 NOV 69 324.92 5.3% 342.14

CURRENT RETIRED PAY $342.14

MEMBER RELEASED FROM ACTIVE DUTY 1 OCTOBER 1969 AND ENTITLED TO

RECOMPUTATION OF RETIRED PAY UNDER 10 U.S.C. 1402(A) (USING METHOD A

ABOVE):

1 OCT 69 $530.40 X 60% 4.0% $330.97

1 NOV 69 330.97 5.3% 348.51

CURRENT RETIRED PAY $348.51

MEMBER RELEASED FROM ACTIVE DUTY 1 JANUARY 1970 AND ENTITLED TO

RECOMPUTATION OF RETIRED PAY UNDER 10 U.S.C. 1402(A) (USING METHOD A

ABOVE):

1 JAN 70 $530.40 X 60% 4.0% 5.3% $348.51

CURRENT RETIRED PAY $348.51

MEMBER RELEASED FROM ACTIVE DUTY 1 OCTOBER 1969 AND ENTITLED TO

RECOMPUTATION OF RETIRED PAY UNDER 10 U.S.C. 1402(A) (USING METHOD B

ABOVE):

1 OCT 69 $530.40 X 60% 2.1% $324.92

1 NOV 69 324.92 5.3% 342.14

CURRENT RETIRED PAY $342.14

MEMBER RELEASED FROM ACTIVE DUTY 1 JANUARY 1970 AND ENTITLED TO

RECOMPUTATION OF RETIRED PAY UNDER 10 U.S.C. 1402(A) (USING METHOD B

ABOVE):

1 JAN 70 $530.40 X 60% 2.1% 5.3% $342.14

CURRENT RETIRED PAY $342.14

MEMBER RELEASED FROM ACTIVE DUTY 1 OCTOBER 1969 AND ENTITLED TO

RECOMPUTATION OF RETIRED PAY UNDER 10 U.S.C. 1402(A) (USING METHOD C

ABOVE):

1 OCT 69 $530.40 X 60% $318.24

1 NOV 69 318.24 5.3% 335.11

CURRENT RETIRED PAY $335.11

MEMBER RELEASED FROM ACTIVE DUTY 1 JANUARY 1970 AND ENTITLED TO

RECOMPUTATION OF RETIRED PAY UNDER 10 U.S.C. 1402(A) (USING METHOD C

ABOVE):

1 JAN 70 $530.40 X 40 X 60% 318.24

CURRENT RETIRED PAY $318.24

IN COMMENTING ON THE EXAMPLES, THE COMMITTEE ACTION STATES THAT RETIRED PAY COMPUTED UNDER METHOD "A" IS GREATER THAN THE RETIRED PAY OF A SERVICEMAN RETIRED UNDER THE SAME BASIC PAY RATE BUT UNDER SOME OTHER PROVISION OF LAW. CONCERNING METHOD "B," IT IS STATED THAT THE MEMBER WOULD GENERALLY BE ENTITLED TO THE SAME RATE OF RETIRED PAY AS HIS COUNTERPART. WITH RESPECT TO METHOD "C," IT IS STATED THAT THE MEMBER WOULD BE ENTITLED TO A LOWER RATE OF RETIRED PAY THAN HIS COUNTERPART AND, DEPENDING UPON THE DATE OF RELEASE FROM ACTIVE DUTY, THERE MAY BE A DIFFERENCE IN RETIRED PAY FOR THOSE PERSONS WHOSE RETIRED PAY IS RECOMPUTED UNDER 10 U.S.C. 1402(A), EVEN THOUGH THE SAME RATE OF BASIC PAY IS USED IN COMPUTING RETIRED PAY.

IN OUR DECISION OF JUNE 4, 1969, B-166335, REFERRED TO IN THE COMMITTEE ACTION, THERE WAS CONSIDERED THE CASE OF AN ENLISTED MAN WHO RETIRED ON DECEMBER 1, 1965, FOR LENGTH OF SERVICE, AND WHO THEREAFTER WAS RECALLED TO ACTIVE DUTY AUGUST 1, 1966, FOR 2 YEARS AND REVERTED TO THE RETIRED LIST ON AUGUST 1, 1968. THE QUESTION CONSIDERED IN THAT DECISION INVOLVED THE PROPER RATE OF ACTIVE DUTY PAY TO BE USED IN RECOMPUTING THE MEMBER'S RETIRED PAY AND WHETHER THAT PAY SHOULD BE INCREASED BY ANY CPI ADJUSTMENT. SINCE THE MEMBER, WHEN RELEASED FROM ACTIVE DUTY, WAS IN RECEIPT OF ACTIVE DUTY PAY AT THE RATES PRESCRIBED IN EXECUTIVE ORDER NO. 11414, WHICH BECAME EFFECTIVE JULY 1, 1968, HE HAD RECEIVED PAY AT THOSE RATES FOR LESS THAN 2 YEARS; AND WE SAID THAT HE WAS ENTITLED, UNDER THE SECOND SENTENCE IN FOOTNOTE 1 OF SECTION 1402(A), TO HAVE HIS RETIRED PAY RECOMPUTED AT THE RATE OF BASIC PAY PRESCRIBED IN SECTION 1, PUBLIC LAW 90 -207, EFFECTIVE OCTOBER 1, 1967 - THE 1967 RATES OF BASIC PAY WERE REPLACED BY THE 1968 RATES.

FOR THE REASONS INDICATED IN THE DECISION OF JUNE 4, 1969, WE CONCLUDED THAT THE ENLISTED MAN'S SITUATION DID NOT APPEAR TO BRING HIM WITHIN THE PURVIEW OF EITHER SUBSECTION (C) OR D) OF SECTION 1401A SO AS TO REQUIRE APPLICATION OF ONLY A PARTIAL CPI INCREASE IN THE COMPUTATION OF HIS RETIRED PAY. WE HELD THAT HE WAS ENTITLED, EFFECTIVE AUGUST 1, 1968, TO HAVE HIS GROSS RETIRED PAY INCREASED BY 3.9 PERCENT UNDER THE CPI INCREASE WHICH BECAME EFFECTIVE APRIL 1, 1968. WE SAID THAT HIS CASE IS THE SAME AS IF HE HAD INITIALLY RETIRED ON OCTOBER 1, 1967, WITH RETIRED PAY COMPUTED ON ACTIVE DUTY PAY RATES THEN IN EFFECT.

THE LEGISLATIVE HISTORY OF SECTION 2 OF PUBLIC LAW 90-207, APPROVED DECEMBER 16, 1967, 81 STAT. 652, WHICH AMENDED SECTION 1401A OF TITLE 10, AND ADDED SUBSECTIONS (C) AND (D) TO THAT SECTION, INCLUDES THE FOLLOWING STATEMENT ON PAGE 12 OF S. REP. NO. 808 (TO ACCOMPANY H.R. 13510, WHICH BECAME PUBLIC LAW 90-207):

(2) THE BILL MODIFIES THE CPI FORMULA IN SUCH A MANNER THAT THOSE WHO ARE ON ACTIVE DUTY AND RECEIVE STATUTORY INCREASES AND SUBSEQUENTLY RETIRE, WILL BE LIMITED WHEN THEY RECEIVE A CPI INCREASE WHILE ON THE RETIRED LIST, TO THAT PORTION OF THE CPI INCREASE THAT HAS OCCURRED SINCE THE LAST STATUTORY INCREASE IN HIS BASIC PAY. FOR EXAMPLE, IF AN INDIVIDUAL RETIRES FEBRUARY 1, 1968, UNDER THE NEW PAY RATES AUTHORIZED IN THIS LEGISLATION, AND THEREAFTER A CPI INCREASE IS AUTHORIZED FOR THOSE ON THE RETIRED LIST ON APRIL 1, 1968 (WHICH IS BASED ON A 3 PERCENT INCREASE OCCURRING BETWEEN SEPTEMBER 1966 AND APRIL 1968), THE PERSON WOULD RECEIVE ONLY THAT PORTION OF THE CPI INCREASE WHICH HAS OCCURRED SINCE OCTOBER 1, 1967, THE DATE OF HIS STATUTORY INCREASE, AND APRIL 1968.

(3) THE THIRD ELEMENT IN THE LEGISLATIVE RECOMMENDATIONS IS TO PROVIDE THAT WHENEVER THERE IS A 3-PERCENT CPI INCREASE AND THERE HAVE BEEN NO STATUTORY ACTIVE DUTY PAY INCREASES, PERSONS SUBSEQUENTLY RETIRING UNDER THESE SAME PAY SCALES WILL HAVE THEIR INITIAL RETIRED PAY INCREASED BY THE SAME PERCENTAGE OF INCREASE AS WAS ACCORDED THOSE RETIRING PRIOR TO THE CPI ADJUSTMENT AND SUBSEQUENT TO THE STATUTORY PAY INCREASE. *** NEITHER THE LAW (SECTION 2 OF PUBLIC LAW 90-207) NOR ITS LEGISLATIVE HISTORY CONTAINS ANY SPECIFIC STATEMENT AS TO WHETHER THE PARTIAL CPI ADJUSTMENT FORMULA PRESCRIBED IN SUBSECTIONS (C) AND (D) OF SECTION 1401A WAS INTENDED TO BE APPLICABLE TO THOSE MEMBERS COVERED BY SECTION 1402(A). NOTED ABOVE, HOWEVER, IF SUBSECTION (C) AND (D) OF SECTION 1401A ARE NOT APPLIED BUT INSTEAD SUBSECTION (B) OF THAT SECTION (METHOD A IN COMMITTEE ACTION NO. 442) IS USED IN FIXING THE CPI INCREASE FOR 1402(A) MEMBERS (THOSE RELEASED TO INACTIVE SERVICE WITHOUT DISABILITY FOLLOWING ACTIVE SERVICE AFTER RETIREMENT) SUCH MEMBERS WOULD, AT LEAST IN SOME CASES, RECEIVE GREATER RETIRED PAY THAN OTHER MEMBERS WHOSE RETIRED PAY IS BASED ON THE SAME BASIC PAY RATE AND WHO WERE NOT RECALLED TO ACTIVE DUTY. APPEARS MOST UNLIKELY THAT THE CONGRESS INTENDED SUCH RESULT.

SINCE RECOMPUTATION OF RETIRED PAY UNDER METHOD "C" WOULD PRECLUDE ANY CPI ADJUSTMENT RELATING TO A PERIOD PRIOR TO RELEASE TO INACTIVE DUTY ON THE RETIRED LIST, WE BELIEVE THAT THIS METHOD WOULD BE CONTRARY TO THE PURPOSE AND INTENT OF 10 U.S.C. 1401A.

WITH RESPECT TO METHOD "B," WHILE THE LANGUAGE OF SUBSECTION (C) AND (D) OF SECTION 1401A IS UNCERTAIN INSOFAR AS ITS APPLICABILITY TO MEMBERS COVERED BY SECTION 1402(A) IS CONCERNED, WE BELIEVE THAT THE APPLICATION OF THAT METHOD IN CASES OF THE TYPE DESCRIBED IN THE QUESTION PRESENTED WOULD BE CONSISTENT WITH THE PURPOSE AND INTENT OF SECTION 1401A. ACCORDINGLY, WE CONCLUDE THAT METHOD "B" SHOULD BE USED IN COMPUTING CPI INCREASES IN SUCH CASES. TO THE EXTENT THAT THE CONCLUSIONS REACHED IN 48 COMP. GEN. 398 AND B-166335, JUNE 4, 1969, MENTIONED ABOVE, ARE INCONSISTENT WITH THIS DECISION, THEY ARE MODIFIED ACCORDINGLY.