VA COST OF LIVING INCREASE 2022 PROMISES VETS BETTER STANDARD OF LIVING


By mmacdougall
money

Recently, lawmakers took action to ensure that there will be a VA cost of living increase. 2022 will see Veterans receiving more federal benefits, and their checks will receive the same increase as Social Security payouts. There is a 5.9% increase in the cost of living adjustment for 2022, which will lead to a significant increase in VA disability rates and monthly compensation for Veterans. This is the largest increase in 40 years. More like this:How To Apply for VA Disability & What You Need To Know

Why Is There a VA Cost of Living Increase 2022?

The Cost of Living Adjustment, also known as COLA, is any adjustment to benefit amounts. The U.S. Department of Veterans Affairs constantly evaluates its current rate for disability benefits to ensure that benefit amounts are keeping up with inflation. It is required that the Cost of Living Adjustment is to be equal to the adjustment of Social Security benefit payments. The increase is based on the percentage increase in the Consumer Price Index for Urban Wage Earnings and Clerical Workers (CPI-W), which measures the change in prices of goods and services over time. The U.S. Bureau of Labor Statistics calculates the monthly CPI-W. The SSA pulls data from July, August, and September from the third quarter of the previous year to the third quarter of the current year. This then helps to determine the cost of living adjustment for the upcoming year.

How the VA Disability Cost of Living Works

To receive the VA disability cost of living increase 2022, you must calculate your rates. The VA examines disability rates every year to make adjustments for inflation and higher costs of living to ensure disability compensation is awarded fairly. To determine the amount of your VA disability benefits, the VA must quantify the severity of the disability. You must include all of the relevant medical documentation and evidence that you have about your medical condition when you submit a claim for VA disability benefits. If you are severely disabled, have a spouse who is also disabled, or have lost a limb, you can receive additional monthly compensation. If you have multiple disabilities, the VA will begin with your most severe disability rating, and for additional disabilities, each rating is roughly cut in half before being added.

More on the VA Benefits Cost of Living Increase 2022

Before the official announcement of the 2022 VA cost of living increase, the estimated cost of living rate fell between 4.5% and 5.3%. Since inflation is still on the rise and increasing the cost of living, it is important that this legislation ensures that Veterans are able to keep up with the changing economy. Lawmakers are taking the first steps to make sure this increase in the cost of living payments happens. To ensure that Veterans receive a payment boost later this year, the measure was filed by Representative Elaine Luria, D-Virginia, Troy Nehls, R-Texas, Sen. Jon Tester, D-Montana, and Sen. Jerry Moran, R-Kansas. They called the proposal critical to bolstering Veterans’ finances. Moran stated, “We have a responsibility to take care of our Veterans, many of whom rely on VA for financial support.” The 2022 VA cost of living increase will apply to payouts including disability compensation, clothing allowance, dependency and indemnity benefits, and many other VA assistance programs. Luria, a Navy Veteran, stated, “Transitioning from active duty to civilian life is not always easy, and a cost-of-living adjustment is the least we can do for the men, women, and families who served our country.” Lawmakers are continuing to take steps to ensure that the VA cost of living increase for 2022 will boost Veterans’ federal benefits later this year. There is currently no timetable set for when either chamber could vote on the proposal, but there is action being taken to ensure these benefits happen. Suggested read:5 Ways to Build Wealth With Military Pension & VA Disability


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