Beginning in 2021, military retirees and VA beneficiaries will see an increase in their checks.
How much exactly? You can expect for your monthly checks to increase 1.3%.
That number is a bit less than the 1.6% increase from last year, however if you look over the course of the past 10 years the number is in line.
The cost of living increase is set to go into effect Dec. 1, 2020. The changes will first show up in your end-of-month payment for December.
Here’s how much extra pay you could expect from the COLA increase, via Military.com:
Retirement Pay Increase
As a result of the increase, retired military members will see a $13 increase for each $1,000 in military retirement pension they receive each month.
Retirees who entered military service on or after Aug. 1, 1986, and opted for the Career Status Bonus (CSB/Redux retirement plan) have any COLA increases reduced by 1%, so they will see a smaller increase in 2021. They should see a monthly increase of only $3 per $1,000.
Survivors receiving Survivor Benefit Plan payments will see the same increase of $13 per $1,000 in their monthly payments.
Military.com continues to outline updates for VA disability recipients:
Disabled veterans will also get a bump. The average VA disability check will go up about $1.85 per month for those with a 10% rating, and $19.68 for those rated at 100%.
More information was reported by Military.com regarding other Federal retirees and beneficiaries:
Military retirees and VA beneficiaries aren’t the only ones who benefit from the COLA increase. Civil Service retirees and Social Security recipients will also see the 1.3% jump in their monthly checks.
For Social Security recipients, the monthly increase will mean an extra $18.07 per month for the average beneficiary.
While many veterans were hoping for a higher increase than 1.3%, it is actually positive news given that earlier projections said there may be no increase at all.
The annual COLA adjustment affects 1 in 5 Americans, and it is calculated based on the CPI (Consumer Price Index).