[Code of Federal Regulations]

[Title 20, Volume 1]

[Revised as of April 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 20CFR225.41]



[Page 452]

 

                      TITLE 20--EMPLOYEES' BENEFITS

 

                  CHAPTER II--RAILROAD RETIREMENT BOARD

 

PART 225_PRIMARY INSURANCE AMOUNT DETERMINATIONS--Table of Contents

 

                   Subpart E_Cost-of-Living Increases

 

Sec.  225.41  How a cost-of-living increase is determined and applied.



    Depending on the condition of the social security trust funds, the 

increase can be based on rises in either the consumer price index as 

published by the Department of Labor or the average wage index which is 

the average of the annual total wages used for computing a PIA. The 

increase is payable when the appropriate index for the third calendar 

quarter of one year shows an increase of at least three percent over the 

same index for the third calendar quarter of the previous year (or the 

last calendar quarter within which a legislated general benefit increase 

became effective). No increase is payable for the calendar year that 

immediately follows a year in which a legislated general benefit 

increase was effective. The increase amount is determined by multiplying 

the PIA by the percentage increase in the appropriate quarter of a 

previous year.