Retired Military Pay Raise 2022
In 2022, runaway inflation contributed to the big increase in this year’s COLA, which will hopefully put consumers in the military community at ease as they face out-of-control cost increases and further supply chain snafus. Across the board, retired and disabled Veterans will be getting a 5.9% retired military pay raise. Not only is a pay raise coming for military retirees, but it’s also the biggest increase in pay since 1982. On average, annual COLA increases have been just 1.5% for the entirety of the last decade. At that rate, this year’s raise amounts to a handful of annual raises all at once.What Is the 2022 COLA for Military Retirees?
The COLA in 2022 is 5.9%, which amounts to $10-$90 per month. Another way to look at the numbers is to expect an additional $59 for every $1,000 of military retirement pension received each month. Survivors of retired military personnel will also see the Survivors Benefit Plan increase 5.9%. Eligible survivors will also see their Special Survivor Indemnity Allowance (SSIA) increase by the same percentage. The highest possible payment from SSIA in 2022 is $346. COLA is calculated by factoring in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). That number is followed across a range of time constituting the third quarter of the previous year to the third quarter of the current year. The Bureau of Labor Statistics in the Department of Labor is responsible for measuring the CPI-W.
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