Military retirees and disabled veterans will probably see a jump in their monthly checks by 2022. This would be the largest increase since the year 1983 as it is believed that the hike will be as high as six percent, reports said.
The government will soon determine the annual inflation-based Cost of Living Adjustment (COLA), military.com reported. Such determination will most likely support the six percent increase per the initial assessments. If the increase is around such a percentage, military retirees could see an average monthly check going up by $160. The veterans who have disabilities could see an increase of nearly $100 from the monthly compensation they are receiving from the Department of Veterans Affairs.
The supposed six percent increase will be determined by basing it on the Consumer Price Index (CPI), measured by the Department of Labor. The department calculates the costs of a select group of goods and services that the military retirees and disabled veterans buy or avail themselves of. These costs are then compared to the previous year to see if an increase is necessary.
The latest increase is expected because this year, costs for most goods and services have gone up much faster than in other years. As per the latest data by the Department of Labor, a 5.4 percent increase from last year has been recorded. The final computation will be made on Sept. 30, which is the end of the current fiscal year. The announcement regarding the expected increase will be in October.
Currently, the Defense Department said that around 1.87 million military retirees are receiving $30,625 as their annual average retirement payment. The Department of Veterans Affairs, on the other hand, said that it is giving disability compensation to almost 5.1 million veterans with an annual benefit amounting to $18,549.