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Will Veterans Get A Pay Raise In 2023?

Veterans may get a pay raise in 2023. That’s what some lawmakers are proposing. It still has to go through Congress, but it looks like there’s a good chance that this will happen. So, if you’re a veteran, keep your fingers crossed.

The SSA recently announced an enormous 8.7% COLA increase to VA Disability Rates for next year, 2023. The official figures will be announced on December 1, 2022. If you were in the military, became ill, or were injured during your service, you may be eligible for monthly disability compensation. 

Stay tuned for more information as the date gets closer! In the meantime, let’s look at some factors that could influence a pay raise for veterans.

What Will the VA Increase be for 2023?

The Veterans Administration just stated that VA disability rates would be increased by 8.7% COLA (cost of living adjustment) in 2023. This is the highest rate increase seen in approximately 40 years as of October 13, 2022. So what does this mean for you? If you are a disabled veteran receiving VA benefits, your 2023 paychecks will be 8.7% higher than they are now. This change will take effect on January 20, 2023.

The Department of Veterans Affairs pays monthly, tax-free compensation to former service members who were injured or became ill while in the military. This form of support is called disability compensation and will continue until 2023. Veterans with pre-existing conditions or new disabilities while serving may also apply for benefits. In addition, veterans who have suffered severe injuries or have a disabled spouse may be eligible for additional payments.

There are two types of disability compensation: Veteran’s Compensation and Veterans Pension. Veterans’ compensation is paid to veterans with disabilities caused by their service. Veterans Pension is paid to low-income wartime veterans with permanent and total disabilities or veterans over 65 who do not have a qualifying disability but served during a period of war.

If you have any questions about how this VA disability rate increase will affect you, don’t hesitate to contact your local Veterans Affairs office.

Will VA DIC Benefits Increase 2023?

DIC rates are not only exclusive, but they also have an annual COLA rate that increases every year. For example, in 2022, DIC rates would rise by 5.9 percent to $1,437.65 monthly. The DIC rate for 2023 will be $1,562.73, as the COLA increase for that year is 8.7 percent. Because this figure is not always correct, you may sometimes be entitled to additional benefits. In addition, eligibility for additional monthly compensation may extend to dependents based on certain qualifiers. If you have doubts about your DIC benefits or believe you are entitled to greater benefits than you are presently getting, please contact the Veterans Benefits Administration immediately.

How Much Will Retired Military Pay Increase in 2023?

The Social Security Administration recently announced an enormous 8.7% COLA increase to VA Disability Rates for 2023. There hasn’t been an increase this large since 1981. Retirees will receive a 5.9% boost in 2022 and a 1.3% raise in 2021; the annual adjustment has averaged 1.9% over the prior ten years. Each month, for every $1,000 of military retirement pension that retired military members receive, they will see an increase of $87 in 2023.

Any retired military service member who started their career on or after August 1, 1986, and chose the Career Status Bonus (CSB/Redux retirement plan), would see their COLA increments decreased by 1%. Consequently, they will only see a $77 increase per $1,000 in 2023. There are about 20% of retirees fall into this category.

The cost-of-living adjustment (COLA) is based on the Bureau of Labor Statistics’ Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The CPI-W measures price changes in consumer goods and services. The index is calculated monthly, but the COLA only adjusts military retirement benefits once a year, in December. Service members retiring in 2022 will receive a lower COLA in 2023. Their COLA is determined by the quarter in which they retired (Jan. – March; April – June, etc.). The prorated amount may be altered depending on when members join the military and their chosen retirement plan. Benefit payments for handicapped veterans will be increased beginning next year. 

For those with a 10% average disability rating, their monthly check will increase by $13.28. For those rated at 100%, their checks will grow by $289.89 per month on average. So, suppose you are a retired military member or a disabled veteran receiving VA benefits. In that case, your 2023 paychecks will be 8.7% higher than they are now. The official pay date for this change will be January 20, 2023. Veterans can use the extra money to cover the rising costs of goods and services or save it for a rainy day.

Will Federal Retirees Get a COLA in 2023?

Federal retirees receiving a CSRS or CSRS offset pension will experience an 8.7% boost in their COLA. This year’s cost-of-living adjustment (COLA) will be prorated for FERS and CSRS retirees who began receiving benefits in 2022, while Social Security claimants will receive the full COLA regardless of when they first claimed benefits. Therefore, the earlier you retire in the year, the higher your pension will be. For example, retiring in January means your pension will receive 11/12ths of the 8.7% or 7.7% cost-of-living adjustment (COLA). Whereas if you retired later on in February, your pension would only see 10/12ths of the COLA. 

Unless you have special provisions or retired under disability, those who retire from FERS will not have a COLA if they are younger than age 62. However, suppose you are 62 years old and have been retired for the entirety of this year. In that case, you can expect the full COLA (cost-of-living adjustment) rather than a prorated one. 

The Consumer Price Index for Urban Wage Earners and Clerical Workers is used to calculate the cost-of-living adjustment for Veterans Affairs (VA) payments (CPI-W). The CPI-W, published by the United States, measures changes in urban consumer goods and services prices. The Bureau of Labor Statistics is part of the United States Department of Labor.

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