A provision in the Bipartisan Budget Act of 2013 penalizes current and future military members who have served our nation for over twenty years. Specifically, it cuts the annual Cost of Living Adjustment (COLA) for uniformed service retirees by 1 percentage point a year until age 62.
The cuts will have a devastating and long-lasting impact. An E-7 retiring at age 40 today would experience a loss of $83,000 in purchasing power.
Congress is considering a fix in the upcoming appropriations omnibus. NCOA has pledged to support Senate Bill S.1950, the Comprehensive Veterans Health and Benefits and Military Pay Restoration Act of 2014. Read NCOA’s letter to The Honorable Bernie Sanders, Chairman of the Senate Committee on Veterans Affairs here .