by Jim Sheppard » Sun Dec 20, 2015 12:35 pm
James Sheppard
1317 Reche Rd
Fallbrook, CA 92028-3639
Dear James:
Thanks for contacting me regarding Cost-of-Living-Adjustment (COLA) for military retirees. I appreciate the opportunity to respond to your concerns.
As a result of low inflation, largely attributed to the drop in gas prices, it was determined that there will be no Cost-of-Living-Adjustment (COLA) for military retirees in 2016. This determination was made using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) index, which is calculated by the Bureau of Labor Statistics and is not determined by Congress. Since increases became automatic in 1975, this is the third instance of there not being an increase in COLA. I absolutely understand your concern over this determination. However, you may be interested to know that active duty members of the military--with the exception of flag and general officers--will be receiving a 1.3% pay raise. Pay raises are determined by the Employment Cost Index (ECI), which measures private sector growth. Since price inflation and ECI rarely are equal in a year, this is why there are differences in annual adjustments for active duty and retired pay.
As a veteran of the Iraq and Afghanistan wars, I understand full well the sacrifices and hardships that our military and their families have to endure. For this reason, I believe we need to ensure that our veterans and servicemembers receive the compensation and benefits they have been promised and that they deserve. Please be assured that as we continue to discuss these important issues, I will keep your thoughts firmly in mind.
Again, thank you for contacting me. If you have any further questions or concerns please do not hesitate to contact me.
Sincerely,
Duncan Hunter
Member of Congress