Cost-of-Living Adjustment Act of 1986

Cost-of-Living Adjustment Act of 1986 - Provides that whenever there is a cost-of-living increase in benefits payable under title II (Old Age, Survivors and Disability Insurance) of the Social Security Act, there shall be a corresponding increase in: (1) Central Intelligence Agency retirement and disability annuities; (2) civil service retirement and disability annuities; (3) Comptroller General retirement annuities; (4) foreign service retirement and disability annuities; (5) judicial survivors' annuities; (6) military retirement and retainer pay; (7) National Oceanic and Atmospheric Administration commissioned officer retirement pay; (8) Coast Guard retirement pay; (9) Public Health Service commissioned officer retirement pay; (10) Federal employee disability pay; (11) Tax Court judges survivors' annuities; and (12) railroad retirement annuities. Prohibits the treatment of such benefit increases as "automatic spending increases" subject to reductions mandated under the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act).