How does OPM convert the price index plus adjustment factor to a COLA rate?
Primary source
Verbatim text below is from the Electronic Code of Federal Regulations (eCFR), a public-domain U.S. government work. Always verify the current version with the eCFR before relying on it for any legal matter.
Full Text
(a) OPM converts the price index plus the adjustment factor to a COLA rate as shown in the following table:
Price index plus adjustment factor COLA rate subject to paragraph (b) of this section Equal to or greater than 124.50 25 percent. Equal to or greater than 102.00 but less than 124.50 Price index plus the adjustment factor, minus 100, expressed to the nearest whole percent. Less than 102.00 0 percent.
(b) This section is applicable on an area-by-area basis beginning with the effective date of the results of the first survey conducted in each area.
(c) OPM may reduce the COLA rate in any area by no more than 1 percentage point in any 12-month period. Any reduction in the COLA rate for any COLA area cannot be effective until the effective date of the first survey conducted in Hawaii and Guam and CNMI under these regulations.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.