Some area veterans may see a substantial increase in their monthly benefits in the new year.
Beginning Jan. 1, veterans and beneficiaries receiving Department of Veterans Affairs compensation benefits will see a record 8.7% increase to their monthly benefits, the largest increase in more than 30 years.
The VA is increasing compensation payment rates based on the latest cost-of-living adjustment (COLA) announcement, according to va.gov. The annual COLA increase is tied to the Social Security rate change and is based on the consumer price index.
The CPI, provided by the U.S. Department of Labor, measures the average changes in cost for urban goods and services, according to va.gov. DoL takes a snapshot of the costs of a select group of goods and services and compares those costs to the previous year. When there is an increase, those receiving benefits will see a boost in their monthly payments for the upcoming year.
The increase affects VA disability compensation, beneficiaries who receive Dependency and Indemnity Compensation and recipients of special benefit allowances, which include automobile allowance, clothing allowance and Medal of Honor pensions.