B-157665, DECEMBER 6, 1966, 46 COMP. GEN. 549

B-157665, DECEMBER 6, 1966, 46 COMP. GEN. 549

COMPENSATION - DOUBLE - CONCURRENT MILITARY RETIRED AND CIVILIAN SERVICE PAY - RETIRED PAY COST OF LIVING INCREASES - DUAL COMPENSATION ACT FORMULA SECTION 201 (A) OF THE DUAL COMPENSATION ACT, 5 U.S.C. 5532 (B), WHICH PRESCRIBES THE PERCENTAGE INCREASES PROVIDED UNDER 10 U.S.C. 1401A (B) TO REFLECT CHANGES IN THE CONSUMER PRICE INDEX SHALL APPLY TO THE $2,000 OF RETIRED OR RETIREMENT PAY THAT IS NOT SUBJECT TO REDUCTION WHEN A MEMBER OF A REGULAR COMPONENT OF THE UNIFORMED SERVICES HOLDS A CIVILIAN POSITION, CONTEMPLATING ONLY ONE BASE FIGURE FOR ANY GIVEN PERIOD TO WHICH COST OF LIVING PERCENTAGE INCREASES WILL APPLY CUMULATIVELY, THE 3.7 PERCENT INCREASE EFFECTIVE DECEMBER 1, 1966 IS FOR APPLICATION TO THE AMOUNT OF $2,000 EXEMPTED FROM REDUCTION, WHETHER OR NOT A MEMBER BECAME ENTITLED TO RETIRED OR RETIREMENT PAY BEFORE OR ON AND AFTER SEPTEMBER 1, 1965, THE EFFECTIVE DATE OF SECTION 1401A (B), THUS ESTABLISHING AS OF DECEMBER 1, 1966, THE NEW BASIC FIGURE OF $2,074, TO WHICH ANY FUTURE PERCENTAGE INCREASES WILL APPLY CUMULATIVELY. THEREFORE 45 COMP. GEN. 164, EFFECTIVE AS OF DECEMBER 1, 1966, IS OVERRULED.

TO THE SECRETARY OF DEFENSE, DECEMBER 6, 1966:

REFERENCE IS MADE TO LETTER OF NOVEMBER 2, 1966, FROM THE ASSISTANT SECRETARY OF DEFENSE (COMPTROLLER), PRESENTING FOR DECISION UNDER DEPARTMENT OF DEFENSE MILITARY PAY AND ALLOWANCE COMMITTEE ACTION NO. 388 THE FOLLOWING QUESTIONS:

1. BY WHAT AMOUNT WILL A COST OF LIVING INCREASE IN RETIRED AND RETAINER PAY-OF 3.7 PERCENT, EFFECTIVE 1 DECEMBER 1966, PURSUANT TO AUTHORITY CONTAINED IN 10 U.S.C. 1401A (B), INCREASE THE AMOUNT OF $2,088 WHICH IS APPLICABLE TO CERTAIN RETIRED REGULAR OFFICERS, AFFECTED BY THE PROVISIONS OF 5 U.S.C. 5532 (B), WHO BECAME ENTITLED TO RETIRED PAY BEFORE 1 SEPTEMBER 1965?

2. WILL THE INCREASE CITED IN QUESTION 1 INCREASE THE AMOUNT OF $2,000 IN THE FORMULA IN 5 U.S.C. 5532 (B) BY $74 IN THE CASE OF AFFECTED RETIRED REGULAR OFFICERS WHO BECAME ENTITLED TO RETIRED PAY BASED ON ALL RATES OF BASIC PAY IN EFFECT ON AND AFTER 1 SEPTEMBER 1965?

THE PERTINENT PROVISIONS OF SECTION 201 (A) OF THE DUAL COMPENSATION ACT OF AUGUST 19, 1964, PUBLIC LAW 88-448, WHICH BECAME EFFECTIVE DECEMBER 1, 1964, HAVE BEEN CODIFIED (SEE PUBLIC LAW 89-554, SEPTEMBER 6, 1966, 80 STAT. 482), IN SECTION 5532 (B), TITLE 5, U.S. CODE, PROVIDING AS FOLLOWS:

(B) A RETIRED OFFICER OF A REGULAR COMPONENT OF A UNIFORMED SERVICE WHO HOLDS A POSITION IS ENTITLED TO RECEIVE THE FULL PAY OF THE POSITION, BUT DURING THE PERIOD FOR WHICH HE RECEIVES PAY, HIS RETIRED OR RETIREMENT PAY SHALL BE REDUCED TO AN ANNUAL RATE EQUAL TO THE FIRST $2,000 OF THE RETIRED OR RETIREMENT PAY PLUS ONE-HALF OF THE REMAINDER, IF ANY. IN THE OPERATION OF THE FORMULA FOR THE REDUCTION OF RETIRED OR RETIREMENT PAY UNDER THIS SUBSECTION, THE AMOUNT OF $2,000 SHALL BE INCREASED, FROM TIME TO TIME, BY APPROPRIATE PERCENTAGE, IN DIRECT PROPORTION TO EACH INCREASE IN RETIRED OR RETIREMENT PAY UNDER SECTION 1401A (B) OF TITLE 10 TO REFLECT CHANGES IN THE CONSUMER PRICE INDEX.

SECTION 1401A, TITLE 10, U.S. CODE, RELATING TO ADJUSTMENT OF RETIRED PAY AND RETAINER PAY TO REFLECT CHANGES IN THE CONSUMER PRICE INDEX WAS ADDED TO TITLE 10 BY SECTION 5 (G) (1), PUBLIC LAW 88-132, 77 STAT. 213, 214, WHICH BECAME EFFECTIVE OCTOBER 1, 1963. NO DETERMINATION HAD BEEN MADE BY THE SECRETARY OF DEFENSE UNDER THAT SECTION PRIOR TO ENACTMENT OF PUBLIC LAW 89-132 WHICH BECAME EFFECTIVE SEPTEMBER 1, 1965. THAT LAW PROVIDES IN SECTION 5 (A) AND (B), 79 STAT. 547, 10 U.S.C. 1401 NOTE AND 1401A (B), AS FOLLOWS:

SEC. 5. (A) THE RETIRED PAY OR RETAINER PAY OF A MEMBER OR FORMER MEMBER OF A UNIFORMED SERVICE WHO IS ENTITLED TO THAT PAY COMPUTED UNDER RATES OF BASIC PAY IN EFFECT BEFORE THE EFFECTIVE DATE OF THIS ACT SHALL BE INCREASED, EFFECTIVE THAT DATE, BY THE PER CENTUM (ADJUSTED TO THE NEAREST ONE-TENTH OF 1 PER CENTUM) THAT THE CONSUMER PRICE INDEX (ALL ITEMS--- UNITED STATES CITY AVERAGE), PUBLISHED BY THE BUREAU OF LABOR STATISTICS, FOR THE CALENDAR MONTH IMMEDIATELY PRECEDING THE EFFECTIVE DATE OF THIS ACT HAS INCREASED OVER THE AVERAGE MONTHLY INDEX FOR CALENDAR YEAR 1962.

(B) SECTION 1401A (B) OF TITLE 10, U.S.C. IS AMENDED TO READ AS FOLLOWS:

"/B) THE SECRETARY OF DEFENSE SHALL DETERMINE THE PER CENTUM THAT THE CONSUMER PRICE INDEX FOR EACH CALENDAR MONTH AFTER THE CALENDAR MONTH IMMEDIATELY PRECEDING THE EFFECTIVE DATE OF THIS ACT HAS INCREASED OVER THE BASE CONSUMER PRICE INDEX (THAT FOR THE CALENDAR MONTH IMMEDIATELY PRECEDING THE EFFECTIVE DATE OF THIS ACT OR, IF LATER, THAT USED AS THE BASIS FOR THE MOST RECENT ADJUSTMENT OF RETIRED PAY AND RETAINER PAY UNDER THIS SUBSECTION). IF THE SECRETARY DETERMINES THAT, FOR THREE CONSECUTIVE CALENDAR MONTHS, THE INDEX HAS SHOWN AN INCREASE OF AT LEAST 3 PER CENTUM OVER THE BASE INDEX, THE RETIRED PAY AND RETAINER PAY OF MEMBERS OR FORMER MEMBERS OF THE ARMED FORCES WHO BECAME ENTITLED TO THAT PAY BEFORE THE FIRST DAY OF THE THIRD CALENDAR MONTH BEGINNING AFTER THE EXPIRATION OF THOSE THREE MONTHS SHALL BE INCREASED, EFFECTIVE THAT DAY, BY THE HIGHEST PER CENTUM OF INCREASE IN THE INDEX DURING THOSE THREE MONTHS, ADJUSTED TO THE NEAREST ONE-TENTH OF 1 PER CENTUM.'

THE DISCUSSION IN COMMITTEE ACTION NO. 388 DISCLOSES THAT THE SECRETARY OF DEFENSE HAS DETERMINED THERE WAS AN INCREASE IN THE CONSUMER PRICE INDEX OF AT LEAST 3 PER CENTUM DURING THE MONTHS OF JULY, AUGUST AND SEPTEMBER 1966, AND THAT THE HIGHEST PER CENTUM INCREASE IN THE INDEX DURING THOSE MONTHS WAS 3.7 PER CENTUM. HENCE, THE RETIRED PAY OF MEMBERS OR FORMER MEMBERS OF THE ARMED FORCES WHO BECAME ENTITLED TO SUCH PAY BEFORE DECEMBER 1, 1966, WAS INCREASED BY 3.7 PER CENTUM EFFECTIVE THAT DATE.

QUESTION 1 ARISES AS A RESULT OF THE HOLDING IN THE DECISION OF SEPTEMBER 23, 1965, 45 COMP. GEN. 164, THAT THE FIGURE OF $2,000 CONTAINED IN THE FORMULA RELATING TO THE AMOUNT OF RETIRED PAY WHICH A RETIRED REGULAR OFFICER IS ENTITLED TO BE PAID WHILE RECEIVING A CIVILIAN SALARY COULD IN THE CIRCUMSTANCES THERE PRESENTED BE INCREASED EFFECTIVE SEPTEMBER 1, 1965, BY VIRTUE OF THE PROVISIONS OF SECTION 5 (A) OF PUBLIC LAW 89-132. IT WAS STATED IN THE DECISION OF SEPTEMBER 23, 1965:

* * * WHILE THE INCREASE AUTHORIZED BY SECTION 5 (A) OF THE 1965 PAY ACT (PUBLIC LAW 89-132) IS NOT AN INCREASE PURSUANT TO THE PROVISIONS OF 10 U.S.C. 1401A (B) (AS EXPRESSLY PRESCRIBED IN SECTION 201 (A) OF THE DUAL COMPENSATION ACT OF 1964) IT NEVERTHELESS IS AN INCREASE AUTHORIZED BY CONGRESS AND ITS OBVIOUS PURPOSE IS TO REFLECT CHANGES IN THE CONSUMER PRICE INDEX.

THUS, THE EFFECT OF THE HOLDING RELATING TO QUESTION 1 IN THE DECISION OF SEPTEMBER 23, 1965, WAS TO INCREASE THE AMOUNT OF RETIRED OR RETIREMENT PAY PRESCRIBED IN SECTION 201 (A) OF THE DUAL COMPENSATION ACT OF 1964, BY 4.4 PER CENTUM (FROM $2,000 TO $2,088) CORRESPONDING IN DIRECT PROPORTION TO THE INCREASE AUTHORIZED IN SECTION 5 (A) OF PUBLIC LAW 89-132. THE ISSUE POSED IN QUESTION 1 OF THE CURRENT SUBMISSION IS WHETHER THE 3.7 PER CENTUM INCREASE WHICH BECAME EFFECTIVE DECEMBER 1, 1966, UNDER THE DETERMINATION MADE BY THE SECRETARY OF DEFENSE IN ACCORDANCE WITH THE PROVISIONS OF 10 U.S.C. 1401A (B), AS AMENDED BY PUBLIC LAW 89-132, MAY BE APPLIED TO THE AMOUNT OF $2,088 OR WHETHER THE 3.7 PER CENTUM INCREASE WILL APPLY ONLY TO THE BASIC AMOUNT OF $2,000 PRESCRIBED IN 5 U.S.C. 5532 (B).

IT IS STATED THAT QUESTION 2 IS PRESENTED BECAUSE OF A LACK OF UNIFORM UNDERSTANDING ON THE PART OF THE UNIFORMED SERVICES AS TO THE INTENT OF THE SECOND SENTENCE (DESIGNATED BY UNDERSCORING IN QUOTATION SET FORTH BELOW) CONTAINED IN THE REPLY MADE TO THE SECOND QUESTION IN THE DECISION OF SEPTEMBER 23, 1965. THAT QUESTION WAS AS FOLLOWS:

2. IF THE ANSWER TO QUESTION 1. IS AFFIRMATIVE, MAY IT BE CONSIDERED THAT THE OPERATION OF THE FORMULA CONTAINED IN SECTION 201 (A) OF THE "DUAL COMPENSATION ACT" IS AFFECTED ALSO AS TO ANY OFFICER OF ANY REGULAR COMPONENT OF THE UNIFORMED SERVICES WHO IS OR BECOMES ENTITLED TO RETIRED PAY COMPUTED UNDER RATES OF BASIC PAY IN EFFECT ON OR AFTER THE EFFECTIVE DATE OF PUBLIC LAW 89-132?

AS PREVIOUSLY INDICATED, THE ANSWER TO THE FIRST QUESTION IN THE DECISION OF SEPTEMBER 23, 1965, WAS IN THE AFFIRMATIVE BASED UPON THE VIEW THAT THE PROVISIONS OF SECTION 5 (A) OF PUBLIC LAW 89-132 REFLECTED CHANGES IN THE CONSUMER PRICE INDEX AND, HENCE, THAT SUCH INCREASE IN RETIRED PAY CAME WITHIN THE PURVIEW OF SECTION 201 (A) OF THE DUAL COMPENSATION ACT OF 1964. HOWEVER, SINCE THE PROVISIONS OF SECTION 5 (A) OF PUBLIC LAW 89-132 WERE APPLICABLE ONLY IN THE CASE OF A MEMBER OR FORMER MEMBER OF THE UNIFORMED SERVICES WHO WAS ENTITLED TO RETIRED PAY OR RETAINER PAY COMPUTED UNDER RATES OF ACTIVE DUTY BASIC PAY IN EFFECT BEFORE SEPTEMBER 1, 1965, IT WAS STATED, IN RESPONSE TO QUESTION 2, THAT SECTION 5 (A):

* * * COULD HAVE NO EFFECT ON RETIRED PAY OR RETAINER PAY COMPUTED UNDER THE RATES OF BASIC PAY ESTABLISHED BY THE 1965 ACT. PERSONS WHO ARE OR WHO BECOME ENTITLED TO RETIRED PAY OR RETAINER PAY COMPUTED UNDER THE 1965 PAY RATES MAY IN THE FUTURE BECOME ENTITLED TO AN INCREASE IN SUCH PAY IN ACCORDANCE WITH 10 U.S.C. 1401A (B) AS AMENDED BY SUBSECTION 5 (B) OF THE 1965 ACT, IN WHICH CASE THE INCREASE IN PAY WOULD CAUSE A PROPORTIONATE INCREASE IN THE BASIC AMOUNT OF RETIRED PAY REFERRED TO IN THE FORMULA CONTAINED IN SECTION 201 (A) OF THE DUAL COMPENSATION ACT.

IT IS STATED ON PAGE 3 OF COMMITTEE ACTION NO. 388 THAT THE COMMITTEE IS OF THE VIEW THAT "ALL INCREASES PURSUANT TO THE PROVISIONS OF 10 U.S.C. 1401A (B) AFTER 1 SEPTEMBER 1965 PERMANENTLY EFFECTS AN INCREASE IN THE - AMOUNT OF $2,000- IN DIRECT PROPORTION" AND THAT IF THAT VIEW IS CORRECT "ONLY TWO BASES WILL BE APPLICABLE; ONE ESTABLISHED BY THE AFOREMENTIONED DECISION (DECISION OF SEPTEMBER 23, 1965), AND ANOTHER PROGRESSING FROM $2,000 AFTER 1 SEPTEMBER 1965.'

A MEMBER OF THE UNIFORMED SERVICES WHO BECAME ENTITLED TO RECEIVE RETIRED PAY COMPUTED ON THE RATES OF ACTIVE DUTY BASIC PAY PRESCRIBED IN THE 1965 PAY ACT DID NOT RECEIVE AN INCREASE IN SUCH RETIRED PAY UNDER SECTION 5 (A) OF THAT LAW. CONSEQUENTLY, SUCH A MEMBER WHOSE EMPLOYMENT STATUS ALSO BROUGHT HIM WITHIN THE SCOPE OF THE DUAL COMPENSATION ACT OF 1964 WAS NOT VIEWED IN THE DECISION OF SEPTEMBER 23, 1965, AS ENTITLED TO ANY PER CENTUM INCREASE IN THE BASIC SUM OF $2,000 PRESCRIBED IN SECTION 201 (A) OF THE 1964 ACT.

A SITUATION SIMILAR TO THAT CONSIDERED IN THE DECISION OF SEPTEMBER 23, 1965, HAS ARISEN ON DECEMBER 1, 1966, UNDER THE DETERMINATION BY THE SECRETARY OF DEFENSE THAT THE CONSUMER PRICE INDEX HAS INCREASED BY 3.7 PER CENTUM. ON THAT DATE THOSE MEMBERS OF THE UNIFORMED SERVICES WHOSE RETIRED OR RETIREMENT PAY IS COMPUTED ON THE RATES OF ACTIVE DUTY BASIC PAY WHICH WERE IN EFFECT FROM SEPTEMBER 1, 1965 TO NOVEMBER 30, 1966, INCLUSIVE, BECAME ENTITLED, IF THEIR STATUS CAME WITHIN THE PURVIEW OF 5 U.S.C. 5532 (B), TO AN INCREASE OF 3.7 PER CENTUM IN THE $2,000 AMOUNT THEREIN PRESCRIBED. THUS, FOR THE PURPOSES OF 5 U.S.C. 5532 (B), THE AMOUNT OF $2,000 WOULD BE INCREASED IN EACH SUCH CASE TO $2,074.

ON THE OTHER HAND THOSE INDIVIDUALS WHO BECAME ENTITLED TO AN INCREASE OF 4.4 PER CENTUM UNDER THE ANSWER GIVEN TO THE FIRST QUESTION IN THE DECISION OF SEPTEMBER 23, 1965, WOULD RECEIVE A FURTHER INCREASE OF 3.7 EFFECTIVE DECEMBER 1, 1966. AT THE SAME TIME IF THE LOGIC OF THE DECISION OF SEPTEMBER 23, 1965, IS APPLIED TO THOSE INDIVIDUALS WHO BECAME ENTITLED TO RETIRED OR RETIREMENT PAY ON OR AFTER DECEMBER 1, 1966, NO PERCENTAGE INCREASE IN THE $2,000 AMOUNT PRESCRIBED IN SECTION 5532 (B) WOULD BE AUTHORIZED UNTIL THE EFFECTIVE DATE OF THE NEXT AUTHORIZED PERCENTAGE INCREASE IN RETIRED OR RETIREMENT PAY. IT WOULD THUS APPEAR THAT EFFECTIVE DECEMBER 1, 1966, THERE HAVE ARISEN UNDER THE HOLDING IN THE DECISION OF SEPTEMBER 23, 1965, AT LEAST TWO OR POSSIBLY THREE SEPARATE BASES FOR USE IN APPLYING THE FORMULA PRESCRIBED IN SECTION 5532 (B) AND THAT ADDITIONAL BASES WOULD BE ADDED AS ADDITIONAL INCREASES IN RETIRED PAY ARE AUTHORIZED. WE ARE OF THE VIEW THAT SUCH A MULTIPLICITY OF BASES FOR THE PURPOSES OF SECTION 5532 (B) WAS NOT CONTEMPLATE BY THE CONGRESS AND SUCH A RESULT DOES NOT SEEM TO BE REQUIRED BY THE LANGUAGE OF THAT SECTION. THAT LANGUAGE MERELY PROVIDES THAT IN THE OPERATION OF THE FORMULA FOR THE REDUCTION OF RETIRED OR RETIREMENT PAY "THE AMOUNT OF $2,000 SHALL BE INCREASED, FROM TIME TO TIME, BY APPROPRIATE PERCENTAGE, IN DIRECT PROPORTION TO EACH INCREASE IN RETIRED OR RETIREMENT PAY UNDER SECTION 1401A (B) OF TITLE 10 TO REFLECT CHANGES IN THE CONSUMER PRICE INDEX.'

THE LAW DOES NOT EXPRESSLY LIMIT THE PERCENTAGE INCREASE IN THE $2,000 BASE THEREIN PRESCRIBED TO THOSE MEMBERS WHO ACTUALLY RECEIVE AN INCREASE IN RETIRED OR RETIREMENT PAY UNDER 10 U.S.C. 1401A (B) BUT SIMPLY PROVIDES THAT THE $2,000 AMOUNT IN SECTION 5532 (B) WILL BE INCREASED FROM TIME TO TIME, PROPORTIONATELY, WHENEVER RETIRED OR RETIREMENT PAY IS INCREASED TO REFLECT CHANGES IN THE CONSUMER PRICE INDEX A STATEMENT WHICH APPEARS ON PAGE 8 OF H. REPT. NO. 890, TO ACCOMPANY H.R. 7381, 88TH CONG. (THE BILL WHICH BECAME THE DUAL COMPENSATION ACT OF AUGUST 19, 1964) SEEMS PERTINENT FOR CONSIDERATION IN DETERMINING HOW SECTION 5532 (B) WAS INTENDED TO OPERATE. THE REPORT READS AS FOLLOWS:

SECTION 201 (A) (NOW CODIFIED AS SECTION 5532 (B), TITLE 5, U.S. CODE) ALSO PROVIDES THAT THE $2,000 SHALL BE INCREASED BY APPROPRIATE PERCENTAGES IN DIRECT PROPORTION TO EACH INCREASE IN SUCH RETIRED OR RETIREMENT PAY UNDER SECTION 1401A (B) OF TITLE 10, U.S.C. TO REFLECT CHANGES IN THE CONSUMER PRICE INDEX. THUS, IF THE FIRST INCREASE UNDER SECTION 1401A (B) AMOUNTS TO 3 PERCENT, SUCH A RETIRED OFFICER THEREAFTER WILL HAVE HIS RETIREMENT OR RETIRED PAY REDUCED TO AN ANNUAL RATE EQUAL TO THE FIRST $2,000 INCREASED BY 3 PERCENT PLUS ONE HALF THE REMAINDER AND THE NEXT INCREASE UNDER SUCH SECTION 1401A (B) WOULD BE APPLIED TO THE NEW BASE ANY LATER INCREASES APPLIED ACCORDINGLY. THUS, IT IS INDICATED THAT THE PERCENTAGE INCREASE WAS INTENDED TO BE CUMULATIVE, THAT IS, THAT A NEW BASE FIGURE WOULD BE ESTABLISHED BY EACH PERCENTAGE INCREASE AUTHORIZED IN RETIRED OR RETIREMENT PAY UNDER 10 U.S.C. 1401A (B).

THE HOLDING IN THE DECISION OF SEPTEMBER 23, 1965, IS NOT CONSISTENT WITH THE CONCLUSION NOW REACHED THAT THE LAW CONTEMPLATES BUT ONE BASE FIGURE TO BE IN FORCE AND EFFECT FOR ANY GIVEN PERIOD OF TIME IN APPLYING THE FORMULA PRESCRIBED IN 5 U.S.C. 5532 (B). THAT DECISION IS, THEREFORE, OVERRULED AND THE ANSWER TO QUESTION 1 THEREIN IS CHANGED FROM THE AFFIRMATIVE TO A NEGATIVE REPLY EFFECTIVE AS OF DECEMBER 1, 1966.

AS A CONSEQUENCE OF THE FOREGOING, THE 3.7 PERCENTAGE INCREASE IN RETIRED AND RETIREMENT PAY WHICH BECAME EFFECTIVE DECEMBER 1, 1966, AS AUTHORIZED UNDER THE PROVISIONS OF 10 U.S.C. 1401A (B), SHOULD BE APPLIED TO INCREASE, AS OF THAT DATE, THE AMOUNT OF $2,000 PRESCRIBED IN SECTION 5532 (B) TO $2,074 AS TO ALL REGULAR RETIRED OFFICERS EMPLOYED BY THE GOVERNMENT IRRESPECTIVE OF THE DATE OF THEIR RETIREMENT. THIS WILL ALSO HAVE THE EFFECT OF REDUCING THE $2,088 FIGURE REACHED IN THE DECISION OF SEPTEMBER 23, 1965, TO THE SAME BASIC NEW AMOUNT OF $2,074 EFFECTIVE DECEMBER 1, 1966. ANY FUTURE PERCENTAGE INCREASE IN THE CONSUMER PRICE INDEX WHICH RESULTS IN A PERCENTAGE INCREASE IN RETIRED OR RETIREMENT PAY UNDER 10 U.S.C. 1401A (B) WILL INCREASE THE NEW BASIC AMOUNT OF $2,074. THE QUESTIONS PRESENTED ARE ANSWERED ACCORDINGLY.