"...The Congressional Budget Office is sticking with its projection of a 1.3 percent cost-of-living adjustment on Dec. 1 in military and civilian retired pay and Social Security. There had been discussion earlier this year that the annual COLA could be as high as 1.9 percent. However, a Sept. 12 statement from the nonpartisan budget office “assumes that the COLA effective on Dec., 1, 2012 would be 1.3 percent...
A final calculation of the COLA will be made in mid-October. While the adjustment takes effect on Dec. 1, it first appears in January payments..."