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2005 cost of living increases in federal military pensions

Summary ETA listed cost of living increases in federal military retired pay effective December 1, 2004, with percentages varying by the service member's entry and retirement dates. State unemployment agencies whose laws reduce benefits for retirement pay were asked to identify affected claimants and apply the required offset. ETA now lists the letter as Canceled; it expired January 7, 2006.
Document
Federal guidance
Agency
U.S. Department of Labor, Employment and Training Administration (ETA)
Document number
UIPL No. 9-05
Date issued
January 7, 2005
Status
Withdrawn
ETA lists this letter Canceled as of October 25, 2026; its printed expiration date was January 7, 2006.
Status last verified October 25, 2026

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This document has been withdrawn. Ezel checks what federal law requires today, under current federal labor law, and answers your situation with citations.

This document has been withdrawn
ETA lists this letter Canceled as of October 25, 2026; its printed expiration date was January 7, 2006. It no longer reflects the agency's current position. Treat this page as historical context, not current guidance, and verify current law before relying on anything here.
About this page: The full text below is the official document from U.S. Department of Labor, Employment and Training Administration (ETA). Ezel adds the plain-English summary and tracks the document's status. The official source linked on this page is authoritative for any reliance.

U.S. Department of Labor
Employment and Training Administration
Advisory System
Washington, D.C. 20210
Classification: [blank in source]
Correspondence symbol: OWS/DUIO
Date: January 07, 2005
Rescissions: None
Expiration date: January 07, 2006

ADVISORY: UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 9-05

TO: STATE WORKFORCE AGENCIES

FROM: CHERYL ATKINSON /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.

a. 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%.

b. 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, 2004 2.7 percent 1401a(b)(2)
January 1–March 31, 2004 2.7 percent 1401a(d)
April 1–June 30, 2004 1.8 percent 1401a(d)
July 1–September 30, 2004 0.3 percent 1401a(d)
October 1–December 31, 2004 0.0 percent 1401a(d)
  1. 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.

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

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

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