; (2) by striking $800 and inserting $8,800 ; and (3) by adding at the end the following: (2) The amount described in paragraph (1) shall be adjusted on March 1 of each year by the percentage amount determined by the Secretary of Labor under section 8146a for that year. (3) A payment under this subsection shall not be includible in the gross income of the recipient for purposes of the Internal Revenue Code of 1986. . (b) Applicability The amendments made by subsection (a) shall apply with respect to any death occurring on or after the date of enactment of this Act. 4. Death gratuity for injuries incurred in connection with employee’s service with an Armed Force (a) In general Section 8102a of title 5, United States Code, is amended— (1) in subsection (a)— (A) by striking The United States and inserting the following: (1) In general The United States ; (B) in paragraph (1), as so designated, by striking up to ; and (C) by adding at the end the following: (2) Adjustment The amount described in paragraph (1) shall be adjusted each March 1 by the amount determined by the Secretary of Labor to represent the percentage change in the Consumer Price Index for All Urban Consumers (all items; United States city average) published for December of the preceding year over that Index published for the December of the year prior to the preceding year, adjusted to the nearest 1/10 of 1 percent. ; (2) by striking subsection (c) and inserting the following: (c) Relationship to other benefits With respect to a death occurring on or after the date of enactment of the Honoring Civil Servants Killed in the Line of Duty Act, any compensation otherwise payable to an individual under this section in connection with any death shall be reduced by any amounts payable to such individual under any other program funded in whole or in part by the United States (excluding any amount payable under section 5569(d)) in connection with such death.