Lawmakers Guarantee Cost-of-Living Boost in VA Disability Benefits
July 07, 2022
Last month, lawmakers took the first steps in ensuring veterans receive a cost-of-living boost in their VA disability benefits this year. New legislation was introduced that would guarantee veterans’ checks see the same increase as Social Security payouts.
Veterans’ Compensation Cost-of-Living Adjustment Act
Filed by Reps. Elaine Luria (D-VA.), Troy Nehls (R-Texas), Sens. Jon Tester (D-Mont.), and Jerry Moran (R-Kansas); the Veterans’ Compensation Cost-of-Living Adjustment Act of 2022 would increase the rates of compensation for veterans with service-connected disabilities and military survivors under the Department of Veterans Affairs. In joint statements, the four called this proposal “critical” to bolster our veteran’s finances.
Legislation linking the two government benefits – VA disability compensation & Social Security benefits – is largely routine. Typically, lawmakers approve the annual proposal to couple VA benefit increases with Social Security increases by large bipartisan margins.
Despite efforts by advocates in the past, an annual cost-of-living increase in veterans’ benefits requires congressional action. On the other hand, Social Security benefits are adjusted based on an automatic formula that is triggered whether lawmakers vote on it or not.
How This Affects You
With this cost-of-living adjustment, VA would be required to increase certain benefits, including disability and dependent compensation, clothing allowances, and dependency and indemnity compensation for surviving spouses and children to reflect increases in the cost of living.
This will be determined by the annual adjustment to Social Security benefits, as determined by the Social Security Administration, and would go into effect on December 1st, 2022. The SSA bases its annual adjustment on the Consumer Price Index (CPI), as determined each December by the Labor Department’s Bureau of Labor Statistics.
While we currently do not know what this year’s adjustment will be. If we look at last year – when inflation first impacted America’s economy – we see the COLA was at 5.9%. As costs continue to rise nationwide, experts predict this figure could be as high as 8.9% or more.
If you are a veteran or know of a veteran that is disabled due to their service and would like to file a New Claim for VA Disability Benefits, Increase your current VA Rating, or appeal a denied VA Claim, please call Legal Help For Veterans, PLLC at (800) 693-4800.