Advertisement

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

Obama signs 1.7 percent veterans' COLA hike

Nov. 27, 2012 - 02:19PM   |   Last Updated: Nov. 27, 2012 - 02:19PM  |  
  • Filed Under

President Obama has signed into law a bill guaranteeing 4 million veterans and survivors will receive the same 1.7 percent cost-of-living adjustment in their benefits that is going to Social Security recipients and military retirees.

The increase takes effect on Dec. 1, and should first appear in January payments.

While the dollar amount of the increase varies by disability rating, the average increase for the year will be $500, said Sen. Jon Tester, D-Mont., one of the chief sponsors of the veterans' COLA bill.

That might not sound like a lot of money, but Larry Polzin, national commander of Disabled American Veterans, said the 1.7 percent boost is important.

"Compensation from the Department of Veterans Affairs is a major source of income for many veterans and their families, so adjusting those payments for inflation is absolutely necessary," Polzin said.

Cost-of-living adjustments in Social Security payments and retired pay for the military and federal employees are automatic, linked by law to changes in the Consumer Price Index, a measure of the cost of goods and services maintained by the Bureau of Labor Statistics.

However, increases in veterans' disability compensation, dependency and indemnity compensation for surviving spouses and dependents and pensions for low-income veterans are not automatic. They require Congress to act and the president to sign legislation providing increases.

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
Rates

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

Uniform overhaul
Warm-up suit, parka and lightweight NWUs are in the works

Subscribe for Print or Digital delivery today!

Classifieds
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.
Woman who cried rape
(3 replies)
   Last Post: TJMAC77SP
        May 3, 2014 1:32 PM
   Last Post: garhkal
        May 1, 2014 5:03 PM
Cliven Bundy
(45 replies)
   Last Post: Chief_KO
        Apr 26, 2014 9:49 AM
Handbooks

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