Cost-of-Living Adjustments (COLA)

COLA for Social Security recipients

The Social Security Administration announced a 5.9% cost-of-living increase in Social Security benefits for recipients of Social Security and Supplemental Security Income (SSI).  The COLA increase begins in January 2022 for benefits payable to Social Security beneficiaries.  Increased payments as a result of COLA begin on December 30, 2021 for SSI beneficiaries.

The SSI payment standard for an individual increases from $794/month to $841/month.  For a couple, the SSI payment standards increases from $1,191/month to $1,261/month.

The standard premium for Part B Medicare coverage is expected to increase from $148.50 to $171.10 in 2022, but could be higher depending on the recipient’s income.

COLA under VA’s Compensation Program

The Department of Veterans Affairs (VA) announced it will also apply a 5.9% COLA for its compensation program effective December 1, 2021.  New monthly rates are set forth below:

Disability Compensation (38 U.S.C. §1114)

Disability Evaluation Percent Monthly Rate
10% $152.64
20% $301.74
30% $467.39
40% $673.28
50% $958.44
60% $1214.03
70% $1529.95
80% $1778.43
90% $1998.52
100% $3332.06
38 U.S.C. § 1114(k) $118.33
38 U.S.C. § 1114(l) $4146.13
38 U.S.C. § 1114(m) $4575.68
38 U.S.C. § 1114(n) $5205.17
38 U.S.C. § 1114(o) $5818.09
38 U.S.C. § 1114(p) $5818.09
38 U.S.C. § 1114(r) $2495.52; 3717.82
38 U.S.C. § 1114(s) $3729.64
38 U.S.C. § 1114(t) $3,717.82

Additional Compensation for Dependents (38 U.S.C. §1115(1))

Disability Evaluation Percent Monthly Rate
38 U.S.C. § 1115(1)(A) $185.78
38 U.S.C. § 1115(l)(B) $321.83; $92.31
38 U.S.C. § 1115(1)(C) $124.24; $92.31
38 U.S.C. § 1115(1)(D) $149.10
38 U.S.C. § 1115(1)(E) $356.16
38 U.S.C. § 1115(1)(F) $298.18

In addition, the clothing allowance authorized under 38 U.S.C. § 1162 has been increased to $891 per year.

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