Military pension cost of living adjustments for unemployment claims

CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION                Unemployment Insurance
               ADVISORY SYSTEM                           CORRESPONDENCE SYMBOL
          U.S. DEPARTMENT OF LABOR                       OUI/DUIO
             Washington, D.C. 20210                      DATE
                                                         December 13, 2023


ADVISORY:       UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 02-24

TO:             STATE WORKFORCE AGENCIES

FROM:           LENITA JACOBS-SIMMONS
                Deputy Assistant Secretary

SUBJECT:        Federal Military Pensions Cost-of-Living Adjustments (COLAs)

1. Purpose. To ensure State Workforce Agencies (SWAs) are aware of the Federal military
   retired pay annual COLA provided by the Department of Defense.

2. Action Requested. The Employment and Training Administration (ETA) requests that State
   Administrators provide the information in this Unemployment Insurance Program Letter
   (UIPL) and the Attachment I to appropriate staff.

3. Summary and Background.

      a. Summary – This UIPL provides SWAs with information regarding the Federal military
         retired pay annual COLA provided by the Department of Defense.

      b. Background – The military COLA is based on the previous year’s Consumer Price
         Index (CPI). Military COLA increases became effective December 1, 2023. 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
         of the Uniformed Services.

4. Details.

   COLA for Retired Pay. Based on the increase in the CPI, there are COLA adjustments for
   retired pay, survivor annuities, and Survivor Benefit Plan premiums effective December 1,
   2023 (see Attachment I). For more information on COLAs for the different retirees, visit the
   Department of Defense website at: https://militarypay.defense.gov/Pay/Retirement/Cola/.

   Instructions. States with laws that require a reduction of the unemployment insurance
   weekly benefit amount 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.



  RESCISSIONS                                             EXPIRATION DATE
  None                                                    Continuing

5. Inquiries. Please direct inquiries to the appropriate ETA Regional Office.

6. References.

   •   Employment and Training Handbook No. 384, second edition, Handbook on
       Unemployment Compensation for Ex-servicemembers,
       https://www.dol.gov/agencies/eta/advisories/handbooks/et-handbook-no-384-2nd-edition.


7. Attachment. Fiscal Year 2024 Adjustments to Retired/Retainer Pay, Survivor Annuities,
   and Premiums.





                                                                                       Attachment I

                    2024 ADJUSTMENTS TO RETIRED/RETAINER PAY,
                         SURVIVOR ANNUITIES AND PREMIUMS

The following Cost-of-Living Adjustments (COLAs) are effective December 1, 2023, based on the
increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W)
through the third quarter calendar year 2023. The term "retired pay" includes retainer pay and the
term "members" includes former members. Where applicable, the appropriate section of United
States Code (U.S.C.) is cited.

                                     COLAs for Retired Pay

    1. The retired pay COLA for those who first became members of a Uniformed Service before
      September 8, 1980, is specified according to the effective date of their retirement, as follows:

       Retired Pay Based on
       Rates of Pay Effective                 Percent Increase        10 U.S.C. Authority
       Before January 1, 2023                 3.2 percent             1401a(b)(2)
       January 1 – December 31, 2023          3.1 percent             1401a(c)

    2. The retired pay COLA for those who first became members of a Uniformed Service on or
      after September 8, 1980, including those members covered by the High-3 or Blended
      Retirement System (BRS), is specified according to the effective date of their retirement, as
      follows:

       Retirement Effective:                  Percent Increase        10 U.S.C. Authority
       Before January 1, 2023                 3.2 percent             1401a(b)(2)
       January 1 - March 31, 2023             3.1 percent             1401a(d)
       April 1 - June 30, 2023                2.2 percent             1401a(d)
       July 1 - September 30, 2023            0.9 percent             1401a(d)
       October 1 - December 31, 2023          0.0 percent             1401a(d)

    3. The retired pay COLA for those who first became members of a Uniformed Service on or
      after August 1, 1986, and also elected to receive a career status bonus under the provisions of
      Sections 322 (as in effect before January 28, 2008) or 354 of Title 37 U.S.C. is specified
      according to the date of their retirement, as follows:

       Retirement Effective                   Percent Increase        10 U.S.C. Authority
       Before January 1, 2023                 2.2 percent             1401a(e)
       January 1 - March 31, 2023             2.2 percent             1401a(e)
       April 1 - June 30, 2023                1.7 percent             1401a(e)
       July 1 - September 30, 2023            0.7 percent             1401a(e)
       October 1 - December 31, 2023          0.0 percent             1401a(e)





                                                                                  Attachment I

                              COLAs for Survivor Annuities

4. Retired Serviceman's Family Protection Plan annuities payable on December 1, 2023, under
   the provisions of Subchapter I of Chapter 73, Title 10, U.S.C., to the spouse or child of a
   member who died on or before March 20, 1974, will be increased by 3.2 percent (ref: 10
   U.S.C. 1434 (e)).

5. Annuities under the Survivor Benefit Plan (SBP) and Reserve Component Survivor Benefit
   Plan (RCSBP) under the provisions of Subchapter II of Chapter 73, Title 10, U.S.C., will be
   increased by the same percentage specified in paragraphs 1, 2, or 3 above by which the
   retired pay of the person providing the annuity would have been increased at such time if the
   person were alive and otherwise entitled to such pay. (ref: 10 U.S.C. 1451 (g)).

6. COLAs for supplemental annuities paid to certain low-income widows of members who were
   deceased before November 1, 1953, will be increased 3.2 percent (ref: Public Law (P.L.)
   100-456, section 653(c)).

7. Annuities for Certain Military Surviving Spouses (ACMSS) payable monthly under the
   provisions of section 644, P.L. 105-85, November 18, 1997, will be increased 3.2 percent
   from $311.55 to $321.52 effective December 1, 2023. (ref: P.L. 105-85, sec 644).

                   Increase in the SBP Low-Cost Premium Threshold

8. Previous amounts with respect to which the 2.5 percent factor of the SBP premium (cost)
   formula apply will be adjusted effective December 1, 2023, in conjunction with the
   adjustments in retired pay made under the provisions of Section 1401a of Title 10, U.S.C.
   (ref: 10 U.S.C. 1452(a)(4)(B)). The Defense Finance and Accounting Service will perform
   necessary calculations to determine actual premiums based on the individual circumstances
   of each case.

9. The amount with respect to which the 2.5 percent factor of the SBP premium (cost) is applied
   will be increased *5.2 percent effective January 1, 2024, from $961 to $1,011. The
   threshold premium is $25.28. Therefore, the Low-Cost Threshold premium is $25.28 plus
   10% of the difference between retired pay and the threshold amount. The breakeven base
   amount is $2,166.43. (ref: 10 U.S.C. 1452(a)(4)(A)).

   *5.2 percent is Assumed based upon the President’s FY2024 budget request.

              Increase in the Special Survivor Indemnity Allowance (SSIA)

10. In accordance with provisions of Section 1450 of Title 10, U.S.C., as amended by section 621
    of P.L. 115-91 and section 622 of P.L. 115-232, the offset between SBP and Department of
    Veterans Affairs Dependency and Indemnity Compensation (DIC) is fully eliminated
    effective January 1, 2023. As such, no SSIA will be made from January 1, 2023, forward.