1. Purpose.To transmit information on the Federal military retired pay annual cost of living adjustments (COLAs).
2. Background. Military COLA increases were effective December 1, 2004, based on the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) through September 2004. Military retired pay, by law, is always rounded down to the next lower dollar amount. The term "retired pay" includes retainer pay, and the term "member" includes former members.
3. COLAs for Retired Pay.
- Members Before September 8, 1980. The retired pay COLA
for those who became a member of a Uniformed Service before September 8, 1980,
is 2.7%.
- Members On or After September 8, 1980. The retired pay
COLA for those who became a member of a Uniformed Service on or after September
8, 1980, is determined by the effective date of their retirement and is as
follows:
Retirement
Effective
Percent Increase 10 U.S.C.
Authority
Before
January 1, 2004 2.7 percent 1401a(b)(2)
January
1-March 31,
2004 2.7 percent 1401a(d)
April
1-June 30, 2004 1.8 percent
1401a(d)
July
1-September
30, 2004 0.3 percent 1401a(d)
October
1-December 31,
2004 0.0 percent 1401a(d)
4. Instructions. States with laws that require a reduction of the weekly unemployment insurance benefit amount (WBA) by the prorated weekly amount of retired pay and pensions should identify claimants affected by the COLA increases and make the appropriate reductions as required by state law.
5. Action Required. State Administrators should provide the above information to appropriate staff.
6. Inquiries. Please direct all inquires to the appropriate regional office.
| RESCISSIONS | EXPIRATION DATE |
| None | January 07, 2006 |