In 2018, disabled veterans and military retirees will see the largest Cost of Living Allowance (COLA) raise in 8 years reflected in their paychecks. While still not large, the 2% increase is a big jump from the 0.3% last year or the 0% in 2015.
The COLA is adjusted annually with the rate of inflation to help government beneficiaries, including retirees and disabled veterans, keep up with the rising cost of living. It is calculated using the Consumer Price Index, which compares the costs of products this year to th
e cost last year.
Check out our site to see the 2018 VA Disability Rates and compare them to the current VA Disability Rates.
While Congress is still debating the amount of the pay raise for active duty troops, this COLA does not require Congressional action. It will go into effect in December regardless of Congress’ decision about the active duty raise.