Do Military Retirees Get a Pay Raise?
As a military retiree, you’ve dedicated years of service to your country, and now you’re looking forward to enjoying your golden years. One question that might be on your mind is: do military retirees get a pay raise? The answer is not a simple yes or no. In this article, we’ll dive into the details to help you understand the complex situation.
What is COLA (Cost of Living Adjustment)?
Before we dive into the specifics of military retirees’ pay raises, it’s essential to understand the concept of COLA (Cost of Living Adjustment). COLA is an annual increase in the amount of money received by military retirees, as well as other federal beneficiaries, to help keep pace with inflation. COLA is based on the Consumer Price Index (CPI) and is usually announced in October for the following year.
How Do Military Retirees Receive a Pay Raise?
Military retirees can receive a pay raise in two ways:
• COLA: As mentioned earlier, COLA is an annual increase in their retirement pay to help keep pace with inflation.
• Combat-Related Special Compensation (CRSC): This is a one-time pay raise, typically granted to retirees who have a combat-related injury or illness. CRSC is a separate program that is not part of the standard COLA increase.
How Does COLA Affect Military Retirees?
Here are some key points to note about COLA:
- Amount: COLA is typically a percentage increase, usually ranging from 1% to 3%.
- Frequency: COLA is applied annually, usually effective December 1st of each year.
- Retirement Pay: COLA affects military retirees’ monthly retirement pay, which includes their basic retirement pay and any additional income from Social Security or other sources.
Who is Eligible for COLA?
To be eligible for COLA, you must meet the following criteria:
- Military Retiree: You must be a military retiree, including those who receive retirement pay from the Department of Veterans Affairs (VA).
- Age: You must be at least 62 years old.
- Service-connected Disability: You must have a service-connected disability rated at 10% or higher.
How to Check Your COLA Rate
You can check your COLA rate on the following websites:
- www.va.gov: Visit the VA’s website and use their online calculator to determine your COLA rate.
- www.defense.gov: Visit the Department of Defense’s website for information on COLA rates and other benefits.
Combat-Related Special Compensation (CRSC)
CRSC is a separate program that provides additional compensation to military retirees with combat-related injuries or illnesses. Here are some key points to note:
- Eligibility: To be eligible for CRSC, you must have a combat-related injury or illness that resulted in a disability rating of 10% or higher.
- Application: You must submit an application to the VA to determine your eligibility for CRSC.
- Amount: CRSC can provide additional compensation ranging from $200 to $3,000 per month.
Conclusion
In conclusion, military retirees can receive a pay raise in two ways: through COLA (Cost of Living Adjustment) and CRSC (Combat-Related Special Compensation). COLA is an annual increase in retirement pay to help keep pace with inflation, while CRSC provides additional compensation to retirees with combat-related injuries or illnesses. It’s essential for military retirees to understand how COLA and CRSC work to ensure they receive the compensation they deserve.
