2007 federal military retired pay adjustment and unemployment benefit offsets

EMPLOYMENT AND TRAINING ADMINISTRATION ADVISORY SYSTEM
U.S. DEPARTMENT OF LABOR
Washington, D.C. 20210
CLASSIFICATION: UI
CORRESPONDENCE SYMBOL: OWS/DUIO
DATE: December 28, 2007
RESCISSIONS: None
EXPIRATION DATE: December 28, 2008
ADVISORY: UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 3-08
TO: STATE WORKFORCE AGENCIES
FROM: EMILY STOVER DeROCCO, Assistant Secretary
SUBJECT: Increase in Federal Military Pensions

1. Purpose. To ensure State Workforce Agencies are aware of the Federal military retired pay annual cost of living adjustment (COLA) and to provide the Department of Defense Web site where the COLA information is located.

2. Background. Military COLA increases were effective December 1, 2007, 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. COLA for Retired Pay. The COLA increase for those individuals who first became a member of a uniformed service before September 8, 1980, is 2.3%.

The COLA increases for those who became members of a uniformed service on or after September 8, 1980, are determined by the effective date of their retirement as follows:

The above information is on the Department of Defense Web site located at: http://www.dfas.mil/retiredpay/costoflivingallowancecola.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 inquiries to the appropriate Regional Office.