The Dec 2008 COLA (which retirees will see in their Jan. 2009 checks) will be 5.8% based on a COLA base change from 203.6 for the third quarter of 2007 to 215.5 (new 2008 COLA Base) for the third quarter of 2008.
The September CPI-W was down 0.1% based on a decrease to 214.935 from the August CPI-W of 215.247. The reduction was primarily based on energy prices decreasing by 1.9% while food prices were up 0.6%.
The following partial COLAs apply to those who retired during calendar year 2008. The partial COLA for retirees who entered service before 8 Sept 1980 (Final Pay) is 5.0%.
The partial COLAs for those who entered after 7 Sept 1980 (Hi-3) will be as follows based on quarter of retirement.
1st Quarter: 5.0%
2nd Quarter: 3.8%
3rd Quarter: 1.2%
4th Quarter: 0.0%
Servicemembers who retired during calendar year 2008 will receive a partial COLA for this year because they already received a January military pay raise (which also raised their 2008 retired pay). Members retired during 2008 will receive full-year COLAs in future years .
View historical CPI and COLA tables