October COLA Released
The Consumer Price Index dipped in October to 229.735. This
is 0.3 percent below the new FY2014 COLA baseline of 230.327. There are 11
months to go before we know the FY2014 COLA, but this is the fifth time in six
years that COLA started the new fiscal year in the hole.
Government retired pay promises must be kept, including annual cost-of-living adjustments (COLA) to prevent erosion of retirees' purchasing power by inflation.
Retired pay and active duty pay increases are different in most years because they are based on different compensation principles.