What you need to know about VA’s Cost-of-Living Increase

I saw Social Security Benefits were increasing for 2024, will that also impact my VA pay?

Yes! The VA is required to follow all cost-of-living adjustments (COLA) made by the Social Security Administration.  Recently, SSA announced it would be providing a 3.2 percent increase for all benefit recipients in 2024 – an increase that VA benefit recipients will also see in their 2024 compensation and pension benefits.

Why only 3.2%? Where does that number come from?

Cost-of-living adjustments are based on the increase in the Consumer Price Index (CPI-W).  First, the Social Security Administration reviews the third quarter press release by the US Bureau of Labor Statistics regarding any calculated increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).  SSA then uses two formulas (set by law) to determine the cost-of-living adjustment for the upcoming year.  SSA is required to publish this calculation in the Federal Register.  Once the notice is published, VA will then defer to SSA’s calculations and provide the same adjustment to its benefit recipients.

Do I need to do anything to get my award adjusted?

No! No action is required on the part of the veteran or benefit recipient to receive the increased payment rate. VA will automatically adjust all awards following the effective date of the COLA.  The new payment rate will be effective December 1, 2023 and will appear in the recipient’s December 30, 2023 benefit payment.

Is COLA a one-time payment?

COLA is not a one-time payment. COLA increases apply to each month’s benefit payment, so you will continue to see the increased amount in your monthly payment until next year’s COLA adjustment.

Where can I find information on the new rates?

Continue to monitor VA’s website regarding compensation rates for the new 2024 disability compensation rates.