UIPL5-09acc.pdf

ETA Advisory File Text

CLASSIFICATION UI CORRESPONDENCE SYMBOL OWS DUIO EMPLOYMENT AND TRAINING ADMINISTRATION ADVISORY SYSTEM U.S. DEPARTMENT OF LABOR Washington D.C. 20210 DATE January 2 2009 ADVISORY UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 5-09 TO STATE WORKFORCE AGENCIES FROM BRENT R. ORRELL s Deputy 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 will be effective December 1 2008 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 5.8 . 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 Retirement Effective Percent Increase 10 U.S.C. Authority Before January 1 2008 5.8 percent 1401a b 2 January 1 - March 31 2008 5.0 percent 1401a d April 1 - June 30 2008 3.8 percent 1401a d July 1 September 30 2008 1.2 percent 1401a d October 1 December 31 2008 0.0 percent 1401a d The above information is on the Department of Defense Web site located at http www.dfas.mil retiredpay costoflivingallowancecola.html . RESCISSIONS None EXPIRATION DATE January 2 2010 -2- 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.