You will be redirected to the page you want to view in  seconds.

Budget office makes 2013 COLA prediction

Sep. 19, 2012 - 11:43AM   |   Last Updated: Sep. 19, 2012 - 11:43AM  |  
  • Filed Under

The Congressional Budget Office is sticking with its projection of a 1.3 percent cost-of-living adjustment on Dec. 1 in military and civilian retired pay and Social Security.

There had been discussion earlier this year that the annual COLA could be as high as 1.9 percent. However, a Sept. 12 statement from the nonpartisan budget office "assumes that the COLA effective on Dec., 1, 2012 would be 1.3 percent."

The newest estimate comes as CBO was putting a price tag on S 2259, the Senate's version of a bill to increase veterans' disability and survivor benefits by the same COLA paid to Social Security recipients. The House of Representatives already has passed a similar bill, HR 4114, in July.

Social Security and retired pay for military and federal civilian workers are linked by law to the Bureau of Labor Statistics' Consumer Price Index, and adjustments are automatic. However, adjustments in veterans' benefits are not automatic, and must be approved by Congress and signed into law by the president.

A final calculation of the COLA will be made in mid-October. While the adjustment takes effect on Dec. 1, it first appears in January payments.

Providing increases in veterans' benefits that match the Social Security COLA but are rounded down the next lower dollar, as required by law, would cost the government $686 million in fiscal 2013, according to the CBO estimate.

Answers by RallyPoint

Join trending discussions in the military's #1 professional community. See what members like yourself have to say from across the DoD.

More In Pay & Benefits

Start your day with a roundup of top defense news.

VA Home Loan

Search By:

Product Options:
Zip Code:

News for your in-box

Sign up now for free Military Times E-Reports. Choose from Money and Education. Subscribers: log in for premium e-newsletters.

This Week's Navy Times

This Week's Navy Times

Go mustang
LDO and warrant careers offer more authority, a pay hike and big retirement payout

Subscribe for Print or Digital delivery today!

MilitaryTimes Green Trusted Classifieds Looking to buy, sell and connect on Military Times?
Browse expanded listings across hundreds of military installations.
Faces of valorHonoring those who fought and died in Operations Iraqi Freedom and Enduring Freedom.
hall of valorThe Hall of Valor is a searchable database of valor award citations collected by Doug Sterner, a Vietnam veteran and Military Times contributing editor, and by Military Times staff.

All you need to know about your military benefits.

Benefits handbook

Guard & Reserve All you need to know about the Guard & Reserve.

guard and reserve handbook