EMPLOYMENT AND TRAINING ADMINISTRATION
ADVISORY SYSTEM
U.S. DEPARTMENT OF LABOR
Washington, D. C. 20210 		CLASSIFICATION

 
CORRESPONDENCE SYMBOL

OWS/DUIO
ISSUE DATE

January 7, 2005
RESCISSIONS

 

EXPIRATION DATE

January 7, 2006

ADVISORY : UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 09-05
 
TO : STATE WORKFORCE AGENCIES
 
FROM : CHERYL ATKINSON s/s
Administrator
Office of Workforce Security
 
SUBJECT : Increase in Federal Military Pensions

  1. Purpose. To transmit information on the Federal military retired pay annual cost of living adjustments (COLAs).

  2. Background. Military COLA increases were effective December 1, 2004, based on the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) through September 2004. Military retired pay, by law, is always rounded down to the next lower dollar amount. The term "retired pay" includes retainer pay, and the term "member" includes former members.

  3. COLAs for Retired Pay.

    1. Members Before September 8, 1980. The retired pay COLA for those who became a member of a Uniformed Service before September 8, 1980, is 2.7%.

    2. Members On or After September 8, 1980. The retired pay COLA for those who became a member of a Uniformed Service on or after September 8, 1980, is determined by the effective date of their retirement and is as follows:

      Retirement Effective Percent Increase 10 U.S.C. Authority
      Before January 1, 20042.7 percent1401a(b)(2)
      January 1-March 31, 20042.7 percent1401a(d)
      April 1-June 30, 20041.8 percent1401a(d)
      July 1-September 30, 20040.3 percent1401a(d)
      October 1-December 31, 20040.0 percent1401a(d)

  4. Instructions. States with laws that require a reduction of the weekly unemployment insurance benefit amount (WBA) by the prorated weekly amount of retired pay and pensions should identify claimants affected by the COLA increases and make the appropriate reductions as required by state law.

  5. Action Required. State Administrators should provide the above information to appropriate staff.

  6. Inquiries. Please direct all inquires to the appropriate regional office.