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2005 military pension cost of living adjustments

Summary ETA told state workforce agencies about military retired pay cost of living increases effective December 1, 2005. It listed increases by retirement date and directed states whose laws offset unemployment benefits for pensions to identify affected claimants and make the required reductions. ETA now labels this advisory Canceled.
Document
Federal guidance
Agency
U.S. Department of Labor, Employment and Training Administration (ETA)
Document number
UIPL No. 16-06
Date issued
March 6, 2006
Status
Withdrawn
ETA labels this advisory Canceled as of 2026-10-25 without identifying a specific cancellation instrument. The signed letter prints an expiration date of January 31, 2007.
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This document has been withdrawn.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This document has been withdrawn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 labels this advisory Canceled as of 2026-10-25 without identifying a specific cancellation instrument. The signed letter prints an expiration date of January 31, 2007. 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 Treat this page as historical context, not current guidance, and verify current law before relying on anything here.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.

Signed letter (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2006/UIPL16-06.pdf):

EMPLOYMENT AND TRAINING ADMINISTRATION ADVISORY SYSTEM
U.S. DEPARTMENT OF LABOR, Washington, D.C. 20210
CLASSIFICATION: UI
CORRESPONDENCE SYMBOL: OWS/DUIO
DATE: March 6, 2006
ADVISORY: UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 16-06
TO: STATE WORKFORCE AGENCIES
FROM: CHERYL ATKINSON, Administrator, Office of Workforce Security
SUBJECT: Increase in Federal Military Pensions
RESCISSIONS: None
EXPIRATION DATE: January 31, 2007

1. Purpose. To ensure state workforce agencies are aware of the Federal military retired pay annual cost of living adjustments (COLAs) and to provide the Department of Defense Web site where the COLA information is located.

2. Background. Military COLA increases were effective December 1, 2005, based on the increase in the Consumer Price Index (CPI). 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. The COLA increase for those individuals who first became a member of a uniformed service before September 8, 1980, is 4.1%.

The COLA increase 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 as follows:

Retirement Effective | Percent Increase | 10 U.S.C. Authority
Before January 1, 2005 | 4.1 percent | 1401a(b)(2)
January 1 - March 31, 2005 | 3.4 percent | 1401a(d)
April 1 - June 30, 2005 | 2.8 percent | 1401a(d)
July 1 - September 30, 2005 | 1.4 percent | 1401a(d)
October 1 - December 31, 2005 | 0.0 percent | 1401a(d)

The above information is on the Department of Defense Web site located at: www.dod.gov/dfas/retiredpay/costoflivingallowancecola/colaincreases.html.

4. Instructions. States with laws that require a reduction of the UI 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.

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

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

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