If you think your veterans
disability benefits aren’t enough to meet your needs, then here’s
some good news for you: President Obama recently signed a COLA bill
that would add to them.
About the cost-of-living
adjustment
The cost-of-living
adjustment (COLA) is an adjustment in benefits that generally occurs
once a year. Since 1975, COLA has been in full effect, and from then
on, Social Security beneficiaries have received an annual increase in
the benefits they receive based on the percentage increase in the
consumer price index. COLAs are in place to ensure Social Security
Disability (SSD) and Supplemental Security Income (SSI) benefits are
not affected by inflation.
Qualifying for COLA
Two factors determine the
application of COLA to a veteran’s benefits: his date of entry into
the armed forces and his date of retirement. If you came into the
service on or after Sep. 8, 1980, then became eligible for retirement
pay on or after Jan. 1, 1996, your COLA will be decreased during your
first calendar year of retirement. COLA increases will only be
applied to subsequent years.
Questions about COLA
COLA greatly benefits a
veteran’s federal withholding tax, monthly gross pay, annuities,
and Survivor Benefit Plan (SBP) premiums. That’s why it pays to
know more about it. For more information about COLA and other
Veterans Affairs (VA) benefits, consult a knowledgeable disability
benefits lawyer.
