Military.com
Military Advantage

2013 Retiree and Veteran COLA

By now military retirees, survivors and veterans should have seen a slight boost in compensation, military retirement pay, Social Security, and annuity programs in January  -- 1.7 percent for most.

The following from MOAA which explains how the 2013 COLA will affect military retirement pay.

Source: Military Officers Association of America -

It’s official. The 2013 cost-of-living adjustment (COLA) for military retired pay, SBP annuities, Social Security checks, and VA disability and survivor benefits is 1.7%, which went into effect last December 1.

But there are two categories of military retirees who won’t receive a 1.7% COLA.

2012 Retirees: Servicemembers who retired during calendar year 2012 will receive a somewhat smaller, partial COLA for this year only, because they already received a January military pay raise (which also raised their 2012 retired pay).

Members who retired between Jan. 1, 2012, and Sept. 30, 2012, will receive a partial COLA based on the calendar quarter in which they retired. Jan.-Mar. retirees will receive 1.7%; Apr.-Jun. retirees, 1.0%; and Jul.-Sept. retirees 0.2%. Those who retire after Oct. 1, 2012, will see no COLA this year. Members retired during 2012 will receive full-year COLAs in future years.

REDUX Retirees: Servicemembers who entered service on or after Aug. 1, 1986 and elected to accept a $30,000 career retention bonus at 15 years of service agreed to accept reduced retired pay and COLAs as a trade-off for the bonus. REDUX retirees’ COLAs are depressed 1% below the normal COLA rate, so they’ll see a 0.7% COLA.

The 1.7% 2013 COLA will be the fourth-lowest COLA since the turn of the century – trailing only the zero-COLA years of 2009-10 and the 1.4% of 2002.

Visit the MOAA website to learn more about COLA and other issues affecting servicemember and retiree benefits.

Show Full Article

Related Topics

Military Advantage

Most Popular Military Pay Articles

2018 Military Pay Charts

Check out the 2018 US military pay scale charts for all ranks for active duty, as well as Reserve and Guard components.

Military Retired Pay Overview

The military retirement system is arguably the best one around, but proper planning is needed to ensure you can retire comfor...

COLA for Retired Pay

Each year military retirees receive a Cost of Living Adjustment to their retirement pay. The increase is based on inflation r...

The Military Retirement System

There are currently four different retirement pay systems depending on when you joined the military. Understanding how each r...