COLAs Could be Reduced for Some Retirees

"...A bipartisan budget deal to avoid another government shutdown and reduce the impact of sequestration over the next two years includes thorns for working-age retirees.

In a move expected to save $6 billion, the Bipartisan Budget Act announced Tuesday by Sen. Patty Murray, D-Wash., and Rep. Paul Ryan, R-Wis., calls for reducing annual cost-of-living adjustments for military retirees under the age of 62.

Working-age military retirees would receive an annual pay adjustment that is 1 percentage point less than the rise in consumer prices. For example, the 1.7 percent COLA that took effect on Dec. 1 and will first appear in January checks would be just 0.7 percent for military retirees under age 62 but still be 1.7 percent for older retirees if the proposal were now in effect..."

Read more at Marine Corps Times

CBO releases estimate for 2014 COLA

"...The cost-of-living adjustment in government benefits for next year is likely to be 1.5 percent, according to an August 8 estimate from the Congressional Budget Office.

This would be smaller than the 1.7 percent COLA received this year.

The COLA becomes effective Dec. 1 and first shows up in January paychecks...

Under federal law, annual COLAs are automatic for military and federal civilian retirees and Social Security beneficiaries, with the increase linked to the Consumer Price Index, a measure of the cost of goods and services."

Read more at the Navy Times