The 2004 cost of living adjustment (COLA) for military retired pay will be
2.7 percent, with some exceptions. Retirees who entered service on or after
Sept. 8, 1980 and who retired between Jan. 1, 2004, and Oct. 31, 2004, will
receive COLAs based on the calendar quarter in which they retired, as
follows: 1st quarter – the full 2.7 percent; 2nd quarter – 1.8 percent; 3rd
quarter – 0.3 percent; and 4th quarter – none. All service members who
retired during 2004 will receive full COLAs in future years. COLAs for 2004
will begin Dec. 1 and will show up in January checks.
