Veterans groups not happy with House Cost of Living Bill

House Passes COLA Bill for Vets
May 22, 2013
Military.com
by Bryant Jordan

The House on Tuesday passed a cost-of-living adjustment bill for veterans that guarantees a raise each year. However, the American Heroes Cost of Living Adjustment Act still contains some provisions that veterans groups don’t like.

Veteran advocates feared that the legislation could tie future increases to a more conservative Consumer Price Index (CPI) formula. Before the bill passed, those fears were resolved.

Lawmakers introduced what is often called “chained CPI” as a measure to lower Social Security spending. Chained CPI more conservatively calculates inflation. The Congressional Budget Office has estimated that a chained CPI could reduce the deficit by about $340 billion.

Along with Social Security, CPI is also used to determine a veteran's COLA. Veterans groups worried that the American Heroes Cost of Living Adjustment Act would protect the COLA from political interference, but it could also lock them into a lower rate. But before the bill was passed, a compromise was struck.
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