Military retirees to receive largest cost of living pay increase in 4 decades

Around New York State

WASHINGTON, D.C. (WWTI) — Many military retirees will see a major increase to their cost of living pay next year.

On November 19 the Department of Defense announced adjustments being made to annual cost of living rates for the calendar year 2022. The DoD stated that this is the largest increase in this pay since 1982.

According to the DoD, most military retirees will receive a 5.9% increase to their retired pay beginning on January 1, 2022. Additionally, in most cases, survivors of members who died on active or inactive duty, or survivors of military retirees who participate in the Survivors Benefit Plan will see a 5.9% increase to annuities.

Survivors who are eligible for the Special Survivor Indemnity Allowance will also receive an increase to their SSIA payments that reflects this 5.9% adjustment. Beginning in January, the maximum amount of SSIA payable will be $346.

Those who retired in 2021 and under the REDUX retirement system may receive slightly different adjustments. Cost of living adjustments for those who first became members of Uninformed Service on or after September 8. 1980, included those covered by the High-3 or Blended Retirement System is specified below:

Retirement EffectivePercent Increase
Before January 1, 20215.9%
January 1 to March 31, 20215.7%
April 1 to June 30, 20214.4%
July 1 to September 30, 20211.8%
October 1 to December 31, 20210.0%
Department of Defense

The retired pay for those who first became members of a Uniformed Service on or after August 1, 1986, and also receives a career status bonus is specified according to the date of their retirement:

Retirement EffectivePercent Increase
Before January 1, 20214.9%
January 1 to March 31, 20214.9%
April 1 to June 30, 20213.9%
July 1 to September 30, 20211.5%
October 1 to December 31, 20210.0%
Department of Defense

Cost of living adjustments are calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers for the four quarters, which ended with the third calendar quarter of 2021.

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