Military and federal civilian retirees, survivor benefit annuitants, disabled veterans and Social Security recipients will see a 1.7 percent cost-of-living adjustment in January.
The yearly COLA on federal benefits is based on inflation as measured by the Bureau of Labor Statistics’ Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The COLA reflects changes in average prices for a market basket of goods and services from the third quarter of 2013 to the third quarter this year. – Tom Philpott
Editor's Note: The COLA increase applies to military and federal civilian retired pay and Social Security benefits. VA Disability Compensation and Pension COLAs are decided separately by Congress, but they typically reflect the rates of increase.