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Veterans on disability and military retirees will receive the same 3.2% cost-of-living increase in 2024 that federal officials announced last week for Social Security recipients.
The boost is much smaller than this year’s 8.7% increase over 2022 and reflects a cooling from inflation.
But those in uniform and federal employees are also likely to receive a 5.2% pay raise beginning in January 2024, the largest boost in more than two decades.
The difference in the two increases is due to their separate processes.
In May, Congress approved legislation guaranteeing veterans on disability and military retirees the same cost-of-living boost in 2024 as Social Security recipients.
Lawmakers must act annually so veteran and military retiree payouts will keep pace with other federal stipends.
The Social Security Administration determines its COLA by using the Consumer Price Index for Urban Wage Earners and Clerical Works, which tracks a broad sampling of costs like rent, groceries and utilities over time.
Some advocates for retirees believe the CPI-W — which doesn't survey the cost of retired households over the age of 62 — isn't an accurate reflection of the inflation rate older Americans face.
The current Consumer Price Index for the Elderly is 4%, in part due to rising health care costs.
COLAs aren't pay raises. These adjustments merely help retirement benefits keep pace with inflation.
In years when there are no increases in the CPI-W, there are no adjustments.
In contrast, pay raises for those in uniform and federal employees are part of the government's annual budget cycle, over which Congress has the final say.
President Joe Biden requested a 5.2% raise for military service members and federal employees in March.
Both the House and Senate have included Biden's requested amount in their versions of the fiscal 2024 National Defense Authorization Act.
Both chambers are reconciling differences in their two NDAA bills, a process they hope to complete before the Thanksgiving recess next month.
Some veterans and military retirees will see the 2024 Social Security COLA increase in their December checks.
About 7.7 million veterans and military retirees receive benefits checks monthly.
— By John Goheen
