(2) The annuity of an employee retiring under this subchapte who was employed by the Panama Canal Company or Canal Zon Government on September 30, 1979, is computed with respect to the period of continuous Panama Canal service from that date, disregard ing any break in service of not more than 3 days, by adding—

(A) 212 percent of the employee's average pay multiplied by s much of that service as does not exceed 20 years; plus

(B) 2 percent of the employee's average pay multiplied by so much of that service as exceeds 20 years.

(3) (A) In the case of an employee who has service as a law en forcement officer or firefighter to which paragraph (2) of this sub section applies, the annuity of that employee is increased by $8 for each full month of that service which is performed in the Republic o Panama.

(B) In the case of an employee retiring under this subchapter who

(i) was employed as a law enforcement officer or firefighter by the Panama Canal Company or Canal Zone Government at any time during the period beginning March 31, 1979, and ending September 30, 1979; and

(ii) does not meet the age and service requirements of sectior 8336 (c) of this title;

the annuity of that employee is increased by $12 for each full month of that service which occurred before October 1, 1979.

(C) An annuity increase under this paragraph does not apply with respect to service performed after completion of 20 years of service (or any combination of service) as a law enforcement officer or firefighter (4) For the purpose of this subsection

(A) "Panama Canal service" means

(i) service as an employee of the Panama Canal Commis sion; or

(ii) service at a permanent duty station in the Canal Zone or Republic of Panama as an employee of an Executive agency conducting operations in the Canal Zone or Republic of Panama; and

(B) "Executive agency" includes the Smithsonian Institution (5) The annuity of an employee retiring under section 8336 (j) o this title is computed under subsection (a) of this section, except tha with respect to service on or after December 21, 1972, the employee' annuity is

(A) 212 percent of the employee's average pay multiplied by s much of the employee's service on or after that date as does no exceed 20 years; plus

(B) 2 percent of the employee's average pay multiplied by s much of the employee's service on or after that date as exceeds 20 years.

(e) The annuity of an employee retiring under section 8336 (e) o this title is computed under subsection (a) of this section. Tha annuity may not be less than 50 percent of the average pay of th employee.

(f) The annuity computed under subsections (a)-(e) and (0) o this section may not exceed 80 percent of

(1) the average pay of the employee; or

(2) the greatest of—

(A) the final basic pay of the Member;

(B) the average pay of the Member; or

(C) the final basic pay of the appointive position of a former Member who elects to have his annuity computed or recomputed under section 8344 (d) (1) of this title.

g) The annuity of an employee or Member retiring under section 7 of this title is at least the smaller of

(1) 40 percent of his average pay; or

(2) the sum obtained under subsections (a)-(c) of this section after increasing his service of the type last performed by the period elapsing between the date of separation and the date he becomes 60 years of age.

wever, if an employee or Member retiring under section 8337 of this e is receiving retired pay or retainer pay for military service (ext that specified in section 8332 (c) (1) or (2) of this title) or Vetins Administration pension or compensation in lieu of such retired retainer pay, the annuity of that employee or Member shall be mputed under subsection (a), (b), or (c) of this section, as appropri2. excluding credit for military service from that computation. If e amount of the annuity so computed, plus the retired or retainer y which is received, or which would be received but for the applicaon of the limitation in section 5532 of this title, or the Veterans' Adnistration pension or compensation in lieu of such retired or retainer 4. is less than the smaller of the annuity otherwise payable under ragraph (1) or (2) of this subsection, an amount equal to the difence shall be added to the annuity payable under subsection (a), 5), or (c) of this section, as appropriate.

(h) The annuity computed under subsections (a), (b), (d) (5), and of this section for an employee retiring under section 8336 (d), (h), (j) of this title is reduced by 1% of 1 percent for each full month the mployee is under 55 years of age at the date of separation. The anity computed under subsections (c) and (f) of this section for a ember retiring under the second or third sentence of section 8336 (g) this title or the third sentence of section 8338 (b) of this title is reced by 1/12 of 1 percent for each full month not in excess of 60 onths, and 1% of 1 percent for each full month in excess of 60 months, e Member is under 60 years of age at the date of separation.

(i) The annuity computed under subsections (a)-(h) and (o) of his section is reduced by 10 percent of a deposit described by section 34 (c) of this title remaining unpaid, unless the employee of Member pects to eliminate the service involved for the purpose of annuity omputation.

(j) (1) The annuity computed under subsections (a)–(i) and (o) of his section for a married employee or Member retiring under this subhapter, or any portion of that annuity designated in writing for the urpose of section 8341 (b) of this title by the employee or Member at the time of retirement, is reduced by 22 percent of so much thereof s does not exceed $3,600 and by 10 percent of so much thereof as ceeds $3,600, unless the employee or Member notifies the Office of Personnel Management in writing at the time of retirement that he oes not desire any spouse surviving him to receive an annuity under

section 8341(b) of this title. An annuity which is reduced under th subsection or any similar prior provision of law shall, for each fu month during which a retired employee or Member is not marrie (or is remarried if there is no election in effect under the followin sentence), be recomputed and paid as if the annuity had not been s reduced. Upon renarriage the retired employee or Member ma irrevocably elect during such marriage, in a signed writing received i the Office within 1 year after such remarriage, a reduction in hi annuity for the purpose of allowing an annuity for his spouse in th event such spouse survives him. Such reduction shall be equal to th reduction in effect immediately before the dissolution of the previou marriage, and shall be effective the first day of the first month begin ning 1 year after the date of remarriage.

(2) Any written notification (or designation) by any employee o Member under the first sentence of paragraph (1) shall not be con sidered valid unless the employee or Member establishes to the satis faction of the Office (A) that the spouse has been notified of the loss o or reduction in survivor benefits or (B) that the employee or Membe has complied with such notification requirements as the Office shall by regulation, prescribe.

(k) (1) At the time of retiring under section 8336 or 8338 of this title, an unmarried employee or Member who is found to be in good health by the Office may elect a reduced annuity instead of an annuity computed under subsections (a)–(i) and (o) of this section and name in writing an individual having an insurable interest in the employee or Member to receive an annuity under section 8341 (c) of this title after the death of the retired employee or Member. The annuity of the employee or Member making the election is reduced by 10 percent, and by 5 percent for each full 5 years the individual named is younger than the retiring employee or Member. However, the total reduction may not exceed 40 percent. An annuity which is reduced under this paragraph or any similar prior provision of law shall, effective the first day of the month following the death of the individual named under this paragraph, be recomputed and paid as if the annuity had not been so reduced.

(2) An employee or Member, who is unmarried at the time of retiring under a provision of law which permits election of a reduced annuity with a survivor annuity payable to his spouse and who later marries, may irrevocably elect, in a signed writing received in the Office within 1 year after he marries, a reduction in his current annuity as provided in subsection (i) of this section. The reduced annuity shall be effective the first day of the first month beginning 1 year after the date of marriage. The election voids prospectively any election previously made under paragraph (1) of this subsection.

(1) The annuity computed under subsections (a)–(k) and (o) of this section for an employee who is a citizen of the United States is increased by $36 for each year of service in the employ of

(1) the Alaska Engineering Commission, or The Alaska Railroad in Alaska between March 12. 1914, and July 1, 1923; or (2) The Isthmian Canal Commission, or the Panama Railroad Company on the Isthmus of Panama between May 4, 1904, and April 1, 1914.

1) In computing any annuity under subsections (a)-(e) and (o) of section, the total service of an employee who retires on an immediinnuity or dies leaving a survivor or survivors entitled to annuity ades, without regard to the limitations imposed by subsection (f) this section, the days of unused sick leave to his credit under a al leave system, except that these days will not be counted in Ermining average pay or annuity eligibility under this subchapter. the purpose of this subsection, in the case of any such employee is excepted from subchapter I of chapter 63 of this title under sec:6301(2)(x)-(xiii) of this title, the days of unused sick leave to credit include any unused sick leave standing to his credit when he sexcepted from such subchapter.

5) The annuity of an employee who is a bankruptcy judge is comred with respect to service after March 31, 1979 and before April 1, 4. as a bankruptcy judge and his military service (not exceeding years) creditable under section 8332 of this title by multiplying 212 ent of his average annual pay by the years of that service. b. L. 89-554, Sept. 6, 1966, 80 Stat. 574, amended Pub. L. 90-83, 78), Sept. 11, 1967, 81 Stat. 214: Pub. L. 90-206, title II, § 224 (b), 16, 1967, 81 Stat. 642; Pub. L. 90-486, § 5(c), Aug. 13, 1968, Stat. 642; Pub. L. 91-93, § 203, Oct. 20, 1969, 83 Stat. 139; Pub. L. -658, § 2, Jan. 8, 1971, 84 Stat. 1961; Pub. L. 92-297, §§ 6, 7(3), ay 16, 1972, 86 Stat. 144; Pub. L. 93-260, § 2(a), Apr. 9, 1974, 88 .76; Pub. L. 93-350, § 6, July 12, 1974, 88 Stat. 356; Pub. L. 93-474, Oct. 26, 1974, 88 Stat. 1438; Pub. L. 94-126, § 1(b), Nov. 12, 1975, Stat. 679; Pub. L. 94-397, § 1(d), Sept. 3, 1976, 90 Stat. 1203; Pub. 95-256, §5(d), Apr. 6, 1978, 92 Stat. 191; Pub. L. 95-317, §§ 1(a), July 10, 1978, 92 Stat. 382; Pub. L. 95-454, Oct. 13, 1978, 92 Stat. 3 and 1224; Pub. L. 95-519, Oct. 25, 1978, 92 Stat. 1819; Pub. L. -598, Nov. 6, 1978, 92 Stat. 2681; Pub. L. 96-70, Sept. 27, 1979, Stat. 472; Pub. L. 96-135, Dec. 5, 1979, 93 Stat. 1057; Pub. L. 96-391, 1.7, 1980, 94 Stat. 1557; Pub. L. 96-499, Dec. 5, 1980, 94 Stat. 2606.) 340. Cost-of-living adjustment of annuities

a) Effective December 1, 1965, each annuity payable from the nd having a commencing date before December 2, 1965, is inased by

(1) the percent rise in the price index, adjusted to the nearest 10 of 1 percent, determined by the Office of Personnel Management on the basis of the annual average price index for calendar year 1962 and the price index for the base month of July 1965; plus

(2) 612 percent if the commencing date (or in the case of the survivor of a deceased annuitant the commencing date of the annuity of the retired employee) occurred before October 2, 1956, or 111⁄2 percent if the commencing date (or in the case of the survivor of a deceased annuitant the commencing date of the annuity of the retired employee) occurred after October 1, 1956. ach annuity payable from the Fund (other than the immediate nuity of an annuitant's survivor or of a child entitled under section 41(e) of this title) having a commencing date after December 1,

So in original. There is no subsec. (n).

1965, but before January 1, 1966, is increased from its commer date as if the annuity commencing date were December 1, 1965. survivor annuity authorized by

(A) section 8 of the Act of May 29, 1930, as amende July 6, 1950; or

(B) section 2 of the Act of June 25, 1958 (72 Stat. 219); is increased by any additional amount required to make the increase under this subsection equal to the smaller of 15 perce $10 a month.

(b) (1) The Office shall—

(A) on January 1 of each year, or within a reasonable thereafter, determine the percent change in the price index lished for December of the preceding year over the price in published for June of the preceding year, and

(B) on July 1 of each year, or within a reasonable time th after, determine the percent change in the price index publis for June of such year over the price index published for Decen of the preceding year.

(2) If in any year the percent change determined under either p graph (1)(A) or (1) (B) indicates a rise in the price index, the

(A) effective March 1 of such year, in the case of an incr under paragraph (1)(A), each annuity payable from the F having a commencing date not later than such March 1 shal increased by the percent change computed under such paragrɛ adjusted to the nearest 1/10 of 1 percent, or

(B) effective September 1 of such year, in the case of an crease under paragraph (1)(B), each annuity payable from Fund having a commencing date not later than such Septemb shall be increased by the percent change computed under s paragraph, adjusted to the nearest 1/10 of 1 percent.

(c) Eligibility for an annuity increase under this section is g erned by the commencing date of each annuity payable from the F as of the effective date of an increase, except as follows:

(1) The first increase (if any) made under subsection (b) of t section to an annuity which is payable from the Fund to an e ployee or Member who retires, or to the widow or widower o deceased employee or Member, shall be equal to the product ( justed to the nearest 1/10 of 1 percent) of—

(A) % of the applicable percent change computed und subsection (b) of this section, multiplied by

(B) the number of full months for which the annuity w payable from the Fund before the effective date of t increase (counting any portion of a month as a full month (2) Effective from its commencing date, an annuity payal from the Fund to an annuitant's survivor (except a child entitl under section 8341 (e) of this title), which annuity commences t day after the death of the annuitant and after the effective date the first increase under this section, shall be increased by the to percent increase the annuitant was receiving under this section death. However, the increase in a survivor annuity authorized section 8 of the Act of May 29, 1930, as amended to July 6, 195