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2.8 Percent Cola Proposed By Senate

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  • HadIt.com Elder

Despite what the Senate said, the COLA will be the same as Soc Sec increase and should be 6.0 % increase for VA comp, Mil Retiree's, etc. Bill has passed the House & Senate and sent to the President and will be based on CPI due out in Mid oct, and arrive in Jan checks.

also see:


Small COLA hike a surprise to veterans

By Rick Maze - Staff writer

http://www.armytimes.com/money/financial_advice/military_vetcola_082108w/A 2.8 percent cost-of-living adjustment in veterans’ disability and survivor pay approved by the Senate just before the summer congressional recess is drawing complaints and head-scratching from veterans because the amount is far short of the annual inflation rate this year, running at 6.2 percent through July.

The proposed 2.8 percent hike “is a joke,” said Dan Cedusky, an Army veteran and veterans’ advocate from Champaign, Ill.

With the cost of everything going up, including state and local taxes, a 2.8 percent increase would leave people further behind, said Cedusky, known in veterans’ circles as Colonel Dan.

But the 2.8 percent hike was included in S 2617 by the Senate Veterans’ Affairs Committee merely as a placeholder, with lawmakers expecting to alter the amount before final passage of the bill so that the annual increase in veterans’ disability compensation, dependency and indemnity compensation for survivors, and pensions for low-income vets matches the cost-of-living adjustment for Social Security and military retired pay.

Social Security, military and federal civilian retirement, and some other federal entitlement programs, automatically increase each Dec. 1 to keep pace with the cost of goods and services; veterans benefits don’t.

Congress must pass and the president must sign legislation granting an increase. Lawmakers try to ensure the change is made at the same time, and in the same amount, as the other federal programs.

While the amount of the Social Security increase won’t be known until late October, it is expected to be well above 2.8 percent. The Consumer Price Index, a measurement of the cost of goods and services calculated monthly by the Bureau of Labor Statistics, is up 6.2 percent with two months to go in the fiscal year.

Steve Strobridge of the Military Officers Association of America said that even amid some signs that inflation is moderating as the cost of crude oil drops, the increase this year will be a lot closer to 6.2 percent than to the 2.8 percent in the veterans’ COLA bill.

The 2.8 percent increase was included in the bill based on a July 17 recommendation from the Congressional Budget Office, a nonpartisan arm of Congress, which Strobridge said clearly is an “old projection.”

It’s not an uncommon practice, he said, but it sticks out this year because the difference between the early inflation estimate and the subsequent increase in consumer prices is large.

In its recommendation to the budget committee, the CBO acknowledged that the 2.8 percent COLA likely would be too small and said it would revise its economic projection later this year.

__"Keep on, Keepin' on"

Dan Cedusky, Champaign IL "Colonel Dan"

See my web site at:


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  • HadIt.com Elder

"the CBO acknowledged that the 2.8 percent COLA likely would be too small and said it would revise its economic projection later this year".

Now theres a brain in motion.......we will just wait until the end of the physical year when we will know the real cost, then we will put the numbers out.

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  • HadIt.com Elder

The 2.8% was an estimate. We will get the same that Social Security gets between 5 and 7% maybe the 6% that they are talking about now.

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  • HadIt.com Elder
"the CBO acknowledged that the 2.8 percent COLA likely would be too small and said it would revise its economic projection later this year".

Now theres a brain in motion.......we will just wait until the end of the physical year when we will know the real cost, then we will put the numbers out.

I thought they waited until the end of the fiscal year, rather than the physical year??? Please correct me if necessary.


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6% Ha! SSDI will probably be a lot lower than some may think, that is after Medicare takes their cut of the increase. I didn't determine how much of last years increase went to Medicare, but the year before took almost half of what my increase total was. It felt like when I was a kid and got a dollar for my allowance for cleaning the yard of leaves and weeds, when I could make five time that doing it for someone else as wages. My heating bill jumped over a hundred dollars a month, last winter, even after I lowered my usage by 30% by lowering my temperature in the house from 68 degrees to 58 degrees and turning it off on warm days altogether. No fun dressing like an Eskamo and having your legs and feet hurt from the cold. Prices for propane and electricity will be higher still this winter, not to mention food prices as well. even 6% is a joke, but I'll take what I can.

I want to sale my place, since I can live in a studio or maybe a one bedroom with paid utilities far less than I can owning my own home. I might even qualify after spending my profits from my home, for low income housing. I'd sale out now except I would have to take a 20% loss which would equate to about a $20,000.00 loss and I'm not prepared to take that kind of loss just for the sake of a few cold months. I just wish their were more porgrams available to help me get over these periods, I'm afraid my health is going to be affected one of these times.

I know I'm crying over things I can't help, but I still pay taxes and don't see very much in return for doing so.

Rockhound B)

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  • HadIt.com Elder

Last few years on COLA I did calculations and usually no increase on first 800 and anything over 800 would get the COLA. Thank God the VA does not do that to us yet.

However, that said I am guessing that I will get a 250 to 300 increase when the dust clears but am waiting for the next rock to drop when they figure a new way to screw us yet again.

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