Retiree & Annuitant COLAs

2013 ADJUSTMENTS TO RETIRED/RETAINER PAY, SURVIVOR ANNUITIES AND PREMIUMS

The following Cost-of-Living Adjustments (COLAs) are effective December 1, 2012, based on the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) through the third quarter calendar year 2012. The term "retired pay" includes retainer pay and the term "members" includes former members.

COLAs for Retired Pay

  1. The retired pay COLA for those who first became a member of a Uniformed Service before September 8, 1980 is specified according to the effective date of their retirement as follows:
    Retired Pay Based on Rates of Pay Effective:Percent Increase10 U.S.C. Authority
    Before January 1, 2012 1.7 percent 1401a(b)(2)
    January 1 - December 31, 2012 1.7 percent 1401a(c)
  2. The retired pay COLA for those who first became a member of a Uniformed Service on or after September 8, 1980 is specified according to the effective date of their retirement as follows:
    Retired Pay Based on Rates of Pay Effective:Percent Increase10 U.S.C. Authority
    Before January 1, 2012 1.7 percent 1401a(b)(2)
    January 1 - March 31, 2012 1.7 percent 1401a(d)
    April 1 - June 30, 2012 1.0 percent 1401a(d)
    July 1 - September 30, 2012 0.2 percent 1401a(d)
    October 1 - December 31, 2012 0.0 percent 1401a(d)
  3. The retired pay COLA for those who first became a member of a Uniformed Service on or after August 1, 1986 and also elected to receive a career status bonus under provisions of section 322 of title 37 United States Code is specified according to the date of their retirement as follows:
    Retirement Effective:Percent Increase10 U.S.C. Authority
    Before January 1, 2012 0.7 percent 1401a(e)
    January 1 - March 31, 2012 0.7 percent 1401a(e)
    April 1 - June 30, 2012 0.5 percent 1401a(e)
    July 1 - September 30, 2012 0.0 percent 1401a(e)
    October 1 - December 31, 2012 0.0 percent 1401a(e)

    COLAs for Survivor Annuities

  4. Retired Serviceman's Family Protection Plan annuities payable on December 1, 2012 under the provisions of subchapter I of chapter 73, title 10, United States Code to the spouse or child of a member who died on or before March 20, 1974 will be increased by 1.7 percent (ref: 10 U.S.C. 1434 (e)).
  5. Annuities under the Survivor Benefit Plan (SBP) and Reserve Component Survivor Benefit Plan (RCSBP) under the provisions of subchapter II of chapter 73, title 10, United States Code will be increased by the same percentage specified in paragraphs 1, 2, or 3 above by which the retired pay of the person providing the annuity would have been increased at such time if the person were alive and otherwise entitled to such pay (ref: 10 U.S.C. 1451 (g)).
  6. COLAs for supplemental annuities paid to certain low income widows of members who were deceased before November 1, 1953 will be increased 1.7 percent (ref: section 653 (c), Public Law 100-456, section 653).
  7. Annuities for Certain Military Surviving Spouses (ACMSS) payable monthly under the provisions of section 644, Public Law 105-85, November 18, 1997 will be increased 1.7 percent from $238.17 to $242.22 effective December 1, 2012 (ref: P.L. 105-85, sec 644).

    Increase in the SBP Low-Cost Premium Threshold

  8. Previous amounts with respect to which the 2.5 percent factor of the SBP premium (cost) formula apply will be adjusted effective December 1, 2012 in conjunction with the adjustments in retired pay made under the provisions of section 1401a of title 10, United States Code (ref: 10 U.S.C. 1452(a)(4)(B)). The Defense Finance and Accounting Service will perform necessary calculations to determine actual premiums based on the individual circumstances of each case.
  9. The amount with respect to which the 2.5 percent factor of the SBP premium (cost) is applied for participation upon retirement will be increased 1.7 percent effective January 1, 2013 from $747 to $760 (premium for this coverage will be $19.00 and the breakeven base amount will be $1,628.57). However, these amounts could change if the FY 2013 National Defense Authorization Act alters the expected military pay raise of 1.7 percent (ref: 10 U.S.C. 1452(a)(4)(A)).

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Last Modified 12/7/2012