Cost of Living AdjustmentBased on the increase in the Consumer Price Index, there will be a 1.7 percent Cost of Living Adjustment (COLA) for retired pay and Survivor Benefit Plan annuities effective Dec. 1, 2012. Most retirees will see the change in their Dec. 31, 2012 payment. Annuitants will receive it Jan. 2, 2013.
However, those who retired between January 1, 2012 and September 30, 2012 will receive a partial COLA based on the quarter they retired.
- January through March retirees will receive 1.7%
- April through June retirees will receive 1.0%
- July through September retirees will receive 0.2%.
Those who retire on or after Oct. 1, 2012 will see no COLA this year.
Retirees who received a Career Status Bonus (CSB) will receive a 0.7 percent increase. This is because they accepted a $30,000 career retention bonus when they reached 15 years of service and agreed to reduced retired pay and COLAs as a trade-off for the bonus.
CSB recipients who retired between January 1, 2012 and June 30, 2012 will receive a partial COLA based on the quarter they retired.
- January through March retirees will receive 0.7%
- April through June retirees will receive 0.5%
CSB recipients who retired on or after July 1, 2012 will see no COLA this year.
The 1.7% COLA also applies to any Department of Veterans Affairs (VA) pay retirees may be receiving.
Back to December Newsletter