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Congress Reacts to COLA Cuts

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January 3, 2014

Over the holidays MOAA began laying the groundwork for the repeal of Sec. 403 of the Bipartisan Budget Act 2013 (BBA). The provision reduces military retiree annual Cost of Living Adjustments (COLA) by one percent each year until age 62.

With the ink barely dry on the BBA several members of Congress – many of whom were not initially aware of the dramatic impact on military servicemembers and retirees – submitted legislation to repeal the COLA-cutting provision.

The bills were introduced by both Republicans and Democrats from the House and Senate. The measures aim to repeal the COLA cut through several different means – including spending cuts and revenue increases.   

The high level of Congressional activity indicates considerable interest on the Hill to fix this injustice, but the lack of a consensus on how to pay for a fix leaves work to be done.

We applaud the outpouring of support from lawmakers. The next step is to work with the House and Senate Armed Services Committees to identify a bipartisan solution that will repeal Section 403 in its entirety.

We are encouraged that with the strong and vocal support of our military and veterans, Congress will act to remove the COLA reduction language and, if necessary, find the $600 million per year elsewhere in the nation’s $1 trillion dollar budget.

The goal is to translate the enthusiasm shown by members of Congress into the repeal of this COLA cut in early 2014.

 

 

Repeal Military Retirement COLA Cuts

Send your elected officials a MOAA-suggested message asking them to repeal this provision that breaks faith with current and future military retirees, and threatens long term readiness and retention in the uniformed services.