The 2016 cost of living adjustment (COLA) for federal benefits will be zero for 2016. This is because the index used to determine military retirement, Department of Veterans Affairs (VA) disability payments, and social security shows that there has been no inflation since last September. The dramatic decrease in the cost of gasoline has cancelled out all the other price increases, leaving a net negative Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This is the third time of no increase since increases were made automatic in 1975. For more details, see this Paycheck Chronicles post.
No Cost of Living Adjustment for 2016
