UIPL 05-25.pdf

ETA Advisory File Text

EMPLOYMENT AND TRAINING ADMINISTRATION ADVISORY SYSTEM U.S. DEPARTMENT OF LABOR Washington D.C. 20210 CLASSIFICATION Unemployment Insurance CORRESPONDENCE SYMBOL OUI DUIO DATE December 17 2024 RESCISSIONS None EXPIRATION DATE Continuing ADVISORY TO UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 05-25 STATE WORKFORCE AGENCIES FROM JOS JAVIER RODR GUEZ Assistant Secretary SUBJECT Federal Military Pensions Cost-of-Living Adjustments COLAs 1.Purpose. To ensure State Workforce Agencies SWAs are aware of the Federal military retired pay annual COLA provided by the Department of Defense. 2.Action Requested. The Employment and Training Administration ETA requests that State Administrators provide the information in this Unemployment Insurance Program Letter UIPL and the Attachment I to appropriate staff. 3.Summary and Background. a.Summary This UIPL provides SWAs with information regarding the Federal military retired pay annual COLA provided by the Department of Defense. b.Background The military COLA is based on the previous year s Consumer Price Index CPI . Military COLA increases became effective December 1 2024. 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 of the Uniformed Services. 4.Details. COLA for Retired Pay. Based on the increase in the CPI there are COLA adjustments for retired pay survivor annuities and Survivor Benefit Plan premiums effective December 1 2024 see Attachment I . For more information on COLAs for the different retirees visit the Department of Defense website at https militarypay.defense.gov Pay Retirement Cola . Instructions. States with laws that require a reduction of the unemployment insurance 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. 2 5. Inquiries. Please direct inquiries to the appropriate ETA Regional Office. 6. References. Employment and Training Handbook No. 384 second edition Handbook on Unemployment Compensation for Ex-servicemembers https www.dol.gov agencies eta advisories handbooks et-handbook-no-384-2nd-edition. 7. Attachment s . Attachment I Fiscal Year 2025 Adjustments to Retired Retainer Pay Survivor Annuities and Premiums. Attachment I I-1 2025 ADJUSTMENTS TO RETIRED RETAINER PAY SURVIVOR ANNUITIES AND PREMIUMS The following Cost-of-Living Adjustments COLAs are effective December 1 2024 based on the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers CPIW through the third quarter calendar year 2024. The term retired pay includes retainer pay and the term members includes former members. Where applicable the appropriate section of United States Code U.S.C. is cited. COLAs for Retired Pay 1. The retired pay COLA for those who first became members of a Uniformed Service before September 8 1980 is specified according to the effective date of their retirement as follows Retired Pay Based on Rates of Pay Effective Percent Increase 10 U.S.C. Authority Before January 1 2024 2.5 percent 1401a b 2 January 1 December 31 2024 2.5 percent 1401a c 2. The retired pay COLA for those who first became members of a Uniformed Service on or after September 8 1980 including those members covered by the High-3 or Blended Retirement System BRS is specified according to the effective date of their retirement as follows Retirement Effective Percent Increase 10 U.S.C. Authority Before January 1 2024 2.5 percent 1401a b 2 January 1 - March 31 2024 2.5 percent 1401a d April 1 - June 30 2024 1.4 percent 1401a d July 1 - September 30 2024 0.2 percent 1401a d October 1 - December 31 2024 0.0 percent 1401a d 3. The retired pay COLA for those who first became members of a Uniformed Service on or after August 1 1986 and also elected to receive a career status bonus under the provisions of Sections 322 as in effect before January 28 2008 or 354 of Title 37 U.S.C. is specified according to the date of their retirement as follows Retirement Effective Percent Increase 10 U.S.C. Authority Before January 1 2024 1.5 percent 1401a e January 1 - March 31 2024 1.5 percent 1401a e April 1 - June 30 2024 0.9 percent 1401a e July 1 - September 30 2024 0.0 percent 1401a e October 1 - December 31 2024 0.0 percent 1401a e Attachment I I-2 COLAs for Survivor Annuities 4. Retired Serviceman s Family Protection Plan annuities payable on December 1 2024 under the provisions of Subchapter I of Chapter 73 Title 10 U.S.C. to the spouse or child of a member who died on or before March 20 1974 will be increased by 2.5 percent ref 10 U.S.C. 1434 e . 5. Annuities under the Survivor Benefit Plan SBP and Reserve Component Survivor Benefit Plan RCSBP under the provisions of Subchapter II of Chapter 73 Title 10 U.S.C. will be increased by the same percentage specified in paragraphs 1 2 or 3 above by which the retired pay of the person providing the annuity would have been increased at such time if the person were alive and otherwise entitled to such pay. ref 10 U.S.C. 1451 g . 6. COLAs for supplemental annuities paid to certain low-income widows of members who were deceased before November 1 1953 will be increased 2.5 percent ref Public Law P.L. 100-456 section 653 c . 7. Annuities for Certain Military Surviving Spouses ACMSS payable monthly under the provisions of section 644 P.L. 105-85 November 18 1997 will be increased 2.5 percent from 321.52 to 329.56 effective December 1 2024. ref P.L. 105-85 sec 644 . Increase in the SBP Low-Cost Premium Threshold 8. Previous amounts with respect to which the 2.5 percent factor of the SBP premium cost formula apply will be adjusted effective December 1 2024 in conjunction with the adjustments in retired pay made under the provisions of Section 1401a of Title 10 U.S.C. ref 10 U.S.C. 1452 a 4 B . The Defense Finance and Accounting Service will perform necessary calculations to determine actual premiums based on the individual circumstances of each case. 9. The amount with respect to which the 2.5 percent factor of the SBP premium cost is applied will be increased 4.5 percent effective January 1 2025 from 1 011 to 1 056. The threshold premium is 26.40. Therefore the Low-Cost Threshold premium is 26.40 plus 10 of the difference between retired pay and the threshold amount. The breakeven base amount is 2 262.86. ref 10 U.S.C. 1452 a 4 A 4.5 percent is assumed based upon the President s FY2025 budget request.