Veterans and their survivors may see a cost of living adjustment (COLA) increase in their comp and pen payment rates for the first time since 2009.
Like military retirement pay, the survivor benefit plan (annuity), and social security, the monthly payment rates for Dept. of Veterans Affairs’ disability compensation, and veteran pensions are annually adjusted for inflation. This means that the present year’s rate of inflation is used to determine the following year’s COLA increases.
According to the Military Officers Association of America (MOAA), the inflation rate continued to increase in August, which will most likely result in a 2012 COLA rate of 3.7%. This could mark the first COLA increase in two years.
However, there is an effort to change the way inflation is gauged. If this happens the likely COLA for 2012 will be about 3.4%.
Based on the 3.4% rate a veteran with a service-connected disability rating of 100% who has no dependents would see his or her Disability Compensation monthly payment rate go from $2,673 to approximately $2,764. The payment for a veteran with 100% rating who has two dependents (one spouse and child) would go from $2,932 to roughly $3,032.
Stayed tuned for further details…