RAO Davao City

United States Military Retiree Activities Office Davao City, Philippines

COLA 2009 UPDATE 1 August 2008

Posted by Service Officer on July 31st, 2008

On 14 JUL, the Bureau of Labor Statistics at www.bls.gov/cpi announced the JUN 08 monthly Consumer Price Index (CPI), which is the metric used to calculate the annual cost-of-living adjustment (COLA) for military retired pay, VA disability compensation, survivor annuities, and Social Security.

The CPI jumped 1.1% over May’s value because of energy prices. The CPI-W for JUN is 215. 233. This puts cumulative inflation at 5.7% since the beginning of the fiscal year in October 07. The COLA will be even higher if inflation goes up between now and 30 SEP. A breakdown by expenditure item (i.e. food, housing, apparel, health etc.) can be found at www.bls.gov/cpi/cpid0806.pdf. About one in every six Americans – millions of former feds, ex-military and people on Social Security – will get the JAN 09 COLA. It’s automatic. Congress and the White House don’t have to do anything to implement it. And, because Social Security is the dangerous third rail of American politics, Congress and the White House know better than to touch it. The majority of federal retirees are under the old Civil Service Retirement System. They will get the full COLA regardless of their age. Retirees who are under the FERS retirement system get one percentage point less than the full COLA and they don’t qualify for it until they are age 62 or older. July’s consumer price indices will be released on 14 AUG 08. [Source: MOAA Leg Up 18 Jul 08 ++]

Leave a Reply

You must be logged in to post a comment.