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2003 military pension increases and unemployment benefit offsets

Summary ETA reported December 2003 military retired pay increases, with different rates based on when the member joined or retired. It told states whose unemployment laws reduce benefits for pension income to identify affected claimants and make the deductions their laws required. The letter rescinded UIPL 07-02; ETA now lists it as Canceled.
Document
Federal guidance
Agency
U.S. Department of Labor, Employment and Training Administration (ETA)
Document number
UIPL No. 11-04
Date issued
December 30, 2003
Status
Withdrawn
ETA lists this advisory as Canceled; it printed an expiration date of December 31, 2004. It expressly rescinded UIPL 07-02.
Status last verified October 25, 2026

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This document has been withdrawn
ETA lists this advisory as Canceled; it printed an expiration date of December 31, 2004. It expressly rescinded UIPL 07-02. 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 Treat this page as historical context, not current guidance, and verify current law before relying on anything here.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.

Official letter (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2003/UIPL11-04.html):

EMPLOYMENT AND TRAINING ADMINISTRATION ADVISORY SYSTEM
U.S. Department of Labor
Washington, D.C. 20210
CLASSIFICATION: UI
CORRESPONDENCE SYMBOL: OWS
DATE: December 30, 2003
UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 11-04
TO: STATE WORKFORCE AGENCIES
FROM: CHERYL ATKINSON /s/, Administrator, Office of Workforce Security
SUBJECT: Increase in Federal Military Pensions

  1. Purpose. To transmit Federal military retired pay due to annual cost of living adjustments (COLAs).

  2. Background. Military COLA increases were effective December 1, 2003, based on the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) through September 2003. 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 specified according to the effective date of the active duty basic pay rate used to compute their pay as follows:

Retired Pay Based on Rates of Pay Effective Percent Increase 10 U.S.C. Authority
Before January 1, 2003 2.1 percent 1401a(b)(2)
January 1, 2003 1.7 percent 1401a(c)

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 specified according to the effective date of their retirement as follows:

Retirement Effective Percent Increase 10 U.S.C. Authority
Before January 1, 2003 2.1 percent 1401a(b)(2)
January 1-March 31, 2003 1.7 percent 1401a(d)
April 1-June 30, 2003 0.7 percent 1401a(d)
July 1-September 30, 2003 0.4 percent 1401a(d)
October 1-December 31, 2003 0.0 percent 1401a(d)
  1. Instructions. It is necessary for states with laws that provide for reduction of the weekly Unemployment Insurance benefit amount by the prorated weekly amount of retired pay and pensions to review the claimants records to identify claimants who will be affected by these COLA increases.

States should take action to make the appropriate deductions as required by state law based on the increased military retired pay in accordance with state law.

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

  2. Inquiries. Please direct all inquiries to the appropriate regional office.

RESCISSIONS: UIPL NO. 07-02
EXPIRATION DATE: December 31, 2004

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