SECTION 229.11—Adjustment
of Dollar Amounts
1. Example of a positive
adjustment. If the CPI-W for July (and released in August) of
the base year and the adjustment year were 100 and 114.7, respectively,
the aggregate percentage change for the period would be 14.7%. If
the applicable dollar amount was $200 for the prior period, then the
adjusted figure would become $225, as the change of $29.40 results
in rounding to $25.
2. Example of no adjustment. If the CPI-W
for July (and released in August) of the base year and the adjustment
year were 100 and 104, respectively, the aggregate percentage change
would be 4.0%. If the applicable dollar amount was $200 for the prior
period, then the adjusted figure would remain $200, as the change
of $8.00 does not result in rounding to $25.
3. Example of accounting for aggregate decrease
in subsequent period. If the CPI-W for July (and released in August)
of the base year and the adjustment year were 100 and 95, respectively,
the aggregate percentage change would be -5%, and no adjustment to
the dollar amounts would occur. The CPI-W for July (and released in
August) of the base year would be the starting point for calculating
any CPI-W increase across subsequent five-year periods. Therefore,
if the CPI-W in July (and released in August) of the base year and
the CPI-W in July (and released in August) of the years at the end
of the next two five-year periods were 100, 95, and 109, respectively,
the aggregate percentage change for the entire period would be 9.0%.
If the applicable dollar amount was $5,000 for the prior period, then
the adjusted figure would become $5,450 as the change of $450 does
not require rounding because it is a multiple of $25.
4. Example of accounting
for aggregate lack of dollar amount change in subsequent period. If the CPI-W for July (and released in August) of the base year
and the year at the end of the subsequent five-year period were 100
and 105, respectively, the aggregate change over the five-year period
would be 5%, and no adjustment to the $200 amount would occur, as
the change of $10 does not result in rounding to $225. Nonetheless,
the CPI-W for July (and released in August) of the base year would
be the starting point for calculating any CPI-W percentage increase
across the subsequent five-year period. Therefore, if the CPI-W in
July (and released in August) of the base year and the CPI-W in July
(and released in August) of the years at the end of the next two five-year
periods were 100, 105, and 112.6, respectively, the aggregate percentage
change for the entire period would be 12.6%. If the applicable dollar
amount was $200 for the prior period, then the adjusted figure would
become $225 as the change of $25.20 results in rounding to $225, the
nearest multiple of $25.
