---
kind: "section"
citation: "20 C.F.R. § 404.274"
title: "20"
number: "404.274"
heading: "What are the measuring periods we use to calculate cost-of-living increases?"
url: "https://uscodex.org/cfr/20/404.274"
---

# §404.274. What are the measuring periods we use to calculate cost-of-living increases?

- (a) **General.** Depending on the OASDI fund ratio, we measure the rise in one index or in both indexes during the applicable measuring period (described in paragraphs [(b)](#b) and [(c)](#c) of this section) to determine whether there will be an automatic cost-of-living increase and if so, its amount.
- (b) **Measuring period based on the CPI—**
  - (1) **When the period begins.** The measuring period we use for finding the amount of the CPI increase begins with the later of—
    - (i) Any calendar quarter in which an ad hoc benefit increase is effective; or
    - (ii) **The third calendar quarter of any year in which the last automatic increase became effective.**
  - (2) **When the period ends.** The measuring period ends with the third calendar quarter of the following year. If this measuring period ends in a year after the year in which an ad hoc increase was enacted or took effect, there can be no cost-of-living increase at that time. We will extend the measuring period to the third calendar quarter of the next year.
- (c) **Measuring period based on the AWI—**
  - (1) **When the period begins.** The measuring period we use for finding the amount of the AWI increase begins with the later of—
    - (i) The calendar year before the year in which an ad hoc benefit increase is effective; or
    - (ii) **The calendar year before the year in which the last automatic increase became effective.**
  - (2) **When the period ends.** The measuring period ends with the following year. If this measuring period ends in a year in which an ad hoc increase was enacted or took effect, there can be no cost-of-living increase at that time. We will extend the measuring period to the next calendar year.

## Notes

### Amendments

[69 FR 19925, Apr. 15, 2004]

### Authority

Authority: Secs. 202(a), 205(a), 215, and 702(a)(5) of the Social Security Act (42 U.S.C. 402(a), 405(a), 415, and 902(a)(5)).

### Source

Source: 47 FR 30734, July 15, 1982, unless otherwise noted.

### Amendments

[69 FR 19925, Apr. 15, 2004]