Military retirees, recipients of benefits from the Department of Veterans Affairs, Social Security recipients, and other federal annuitants will receive a 1.7-percent cost-of-living allowance (COLA) beginning Jan. 1. The increase is based on the Consumer Price Index, a compilation of out-of-pocket expenses calculated annually by the U.S. Bureau of Labor Statistics. The Military Officers Association of America (MOAA) points out that some military retirees will receive lower COLAs. Included are retirees who left the service during 2012 and as such have not been retired a full calendar year, and retirees who entered the service on or after Aug. 1, 1986 and subsequently elected to accept a $30,000 career retention bonus at the 15-year mark in exchange for reduced future retired pay and COLAs.
