Wednesday, January 15, 2014

Military Pay COLA Reduction - Where Are Our Generals On This Pay Cut?

By now everyone should be aware that Congress has done a huge disservice to the small fraction of the military veterans who actually qualify to receive a pension based on service of  between 20-40 years to the nation. Congress decided to reduce the Cost of Living Increase (COLA) for military retirees by 1% each year. So if the cost of living increase was 1.5% in 2014 then the military retiree would receive a .5% COLA increase. Not a very good "Thank you" for serving the past 20 years or more while long-term conflicts raged in Iraq and Afghanistan. A very small portion - only 1% of the population - of Americans ever serve in the military and a small fraction of them ever qualify for retirement; so the lobbying power of the military retiree is not that strong.

One wonders where the voice of the military generals and admirals are (both active duty and retired). A previous post on this blog discusses the silence of the generals. There seems to be more to the story. A recent USA Today article (January 8, 2014) reveals that any three- and four-star admirals and generals get a boost in their retirement pay. Instead of the 50% or more of the active duty pay these high-ranking officers will actually make more money in retirement than they did on active duty. Read the complete story here in "Pensions continue to grow for military brass".

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