EMPLOYMENT AND TRAINING ADMINISTRATION
ADVISORY SYSTEM
U.S. DEPARTMENT OF LABOR
Washington, D. C. 20210
CLASSIFICATION

CORRESPONDENCE SYMBOL

OWS

ISSUE DATE

December 30, 2003

RESCISSIONS

UIPL NO. 07-02

EXPIRATION DATE

December 31, 2004

ADVISORY

:

UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 11-04

 

TO

:

ALL STATE WORKFORCE AGENCIES

 

FROM

:

CHERYL ATKINSON s/s
Administrator
Office of Workforce Security

 

SUBJECT

:

Increase in Federal Military Pensions

  1. Purpose. To transmit Federal military retired pay due to annual cost of living adjustments (COLAs).

  2. Background. Military COLA increases were effective December 1, 2003, based on the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) through September 2003. 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. COLAs for Retired Pay.

    1. Members Before September 8, 1980. The retired pay COLA for those who became a member of a Uniformed Service before September 8, 1980, is specified according to the effective date of the active duty basic pay rate used to compute their pay as follows:

      Retired Pay Based on
      Rates of Pay Effective
      Percent Increase 10 U.S.C. Authority
      Before January 1, 2003 2.1 percent 1401a(b)(2)
      January 1, 2003 1.7 percent 1401a(c)

    2. Members On or After September 8, 1980. The retired pay COLA for those who became a member of a Uniformed Service on or after September 8, 1980, is specified according to the effective date of their retirement as follows:

      Retirement Effective Percent Increase 10 U.S.C. Authority
      Before January 1, 2003 2.1 percent 1401a(b)(2)
      January 1-March 31, 2003 1.7 percent 1401a(d)
      April 1-June 30, 2003 0.7 percent 1401a(d)
      July 1-September 30, 2003 0.4 percent 1401a(d)
      October 1-December 31, 2003 0.0 percent 1401a(d)

  4. Instructions. It is necessary for states with laws that provide for reduction of the weekly Unemployment Insurance benefit amount by the prorated weekly amount of retired pay and pensions to review the claimants records to identify claimants who will be affected by these COLA increases.

    States should take action to make the appropriate deductions as required by state law based on the increased military retired pay in accordance with state law.

  5. Action Required. State Administrators should provide the above information to appropriate staff.

  6. Inquires. Please direct all inquires to the appropriate regional office.