Congress passed the 2012 Cost of Living Adjustment (COLA) for military retirees, veterans receiving compensation for service-connected disabilities, and Social Security recipients. The COLA also affects the rates of dependency and indemnity compensation for survivors of veterans who died as a result of service. This will mark the first COLA increase since 2009. The 3.6% COLA increase will go into effect on December 1, 2011, once the legislation is signed into by law by the President.
It appears that the effort to change the factors used to determine COLA will not take effect for the 2012 rate.