AUSA Extra - More pay on the way for US Army retirees
Butler Defence Solutions
The USA's 2.8 million military retirees will receive a 1.3% increase in retired pay effective 1st Dec 2020
But the January raise for service members and federal civilian workers has not yet been determined.
The cost-of-living increase for retirees matches the increase in Social Security under a formula linked to the Consumer Price Index.
Retirees will first see the increase in their January cheques. Retirement COLAs have been declining.
The increase was 2.8% in 2018 and 1.6% in 2019. The Jan. 1 raise for active and reserve component service members has not been finalized, but the Trump administration requested and the House and Senate have tentatively approved a 3% across-the-board increase that would apply to all ranks. This is only slightly less than the 3.1% increase received in January 2020.