Application of Cost-of-Living Increases to Base Amounts Used in Computation of Survivor Benefit Plan Annuities

An advance decision was requested with regard to the proper method of applying cost-of-living increases pursuant to 10 U.S.C. 1401a to the base amounts prescribed by 10 U.S.C. 1447(2) upon which Survivor Benefit Plan annuities are computed. Base amounts designated under 10 U.S.C. 1447(2) are not subject to adjustment under 10 U.S.C. 1401a(d) or (e) which apply modified cost-of-living adjustments to retired pay computation at the time of retirement. All base amounts designated under 10 U.S.C. 1447(2) upon which Survivor Benefit Plan annuities are based are subject to cost-of-living adjustments under 10 U.S.C. 1401. Past payments to members or beneficiaries not made in accordance with this decision should be adjusted, and amounts due the members or beneficiaries or due the United States should be paid or collected, as appropriate.