97-253 ; September 8, 1982) suspended previously existing permanent law pertaining to cost-of-living adjustments (COLAs) for federal civilian and military retirees. FY1984 (1983) COLA Actions

The COLA situation for military retirees remained unchanged during FY1984 legislative activity (that which took place during calendar year 1983), despite efforts from the Administration and in the Congress. The Administration proposed to:
Repeal the provisions of the Omnibus Reconciliation Act of 1982 (1) authorizing COLAs effective May 1, 1984, and June 1, 1985, and (2) providing for the COLAs of nondisabled retirees under age 62 to be calculated on a different basis from all other retirees' COLAs; Permanently shift the payment date for federal civilian and military retirement COLAs to January 1 of each year, beginning with January 1, 1985. FY1988 (1987) and FY1989 (1988) COLA Actions

The Reagan Administration's FY1988 and FY1989 DOD budgets did not propose any changes in military retirement COLA provisions contained in permanent law. As this report indicates, this was a major change from previous years. First, it proposed to cancel the COLA that would be paid on January 1, 1990. FY1992 (1991) and FY1993 (1992) COLA Actions

The original FY1992 and FY1993 budgets of the Bush Administration, submitted in early 1991 and 1992, respectively, proposed no military retirement COLA reductions. The Boren-Danforth proposal did not exempt disability retirement and survivor benefits from its provisions. Administration Budget

The FY1997-FY1998 DOD budgets of the Clinton Administration included no proposals for changes or cuts in military retirement COLAs—i.e., the budgets for all five years assumed that the law as it stood after enactment of FY1996 legislation would stand: payment of each fiscal year's COLA on January 1 of each year. FY1999-FY2005 (1998-2004) COLA Actions

In each of the seven fiscal years FY1999-FY2005, all military retirement COLAs were first paid on January 1 of those years. There were no proposals in the Administration budgets and no congressional actions directed at any COLA changes in these years. These seven years are the longest period since military retirement COLAs were first authorized in 1963 in which no legislative changes in the COLA mechanism have been even proposed. Similarly, the eight fiscal years FY1997-FY2005 (calendar years 1996-2004), contained no changes in the COLA formula, the longest such period since 1963 in which no actual changes were made.
The Omnibus Reconciliation Act of 1982 (which applied to FY1983 budget issues) suspended previously existing permanent law pertaining to cost-of-living adjustments (COLAs) for federal civilian and military retirees, and changed the COLA calculation formulas to postpone and/or reduce future COLAs for military retirees during 1983-1985 (FY1984-FY1986). Although the COLA situation during 1983 (FY1984) remained unchanged, despite some proposals to modify the 1982 legislation so as to further reduce COLAs, the period from 1984 (the FY1985 budget) to 1986 (the FY1987 budget) was marked by intense debate over reducing COLAs and an actual elimination of the 1986 (FY1987) COLA. Reagan Administration budget proposals in both 1987 (FY1988) and 1988 (FY1989) did not propose any changes in military retirement COLA provisions contained in permanent law, a major change from the previous several years. Neither did any such changes take place as a result of congressional action.
The original Bush Administration budgets in both 1989 (FY1990) and 1990 (FY1991) proposed canceling the COLAs scheduled for January 1, 1990, and January 1, 1991, respectively, and reducing future COLAs. However, none of these proposals were eventually enacted into law. The Bush Administration budgets in 1991 (FY1992) and 1992 (FY1993) did not include any proposals for reducing COLAs, and no such proposals were acted on by the Congress.
The Clinton Administration's budgets for 1993-1999 (FY1994-2000) did not include any proposals for reducing COLAs, although COLA reduction proposals were considered by the Congress during some of these years. Some were enacted in each of the years 1993-1995 (FY1994-1996), providing that in each of those years, disabled military retirees and survivor benefit recipients were first paid their COLA on January 1; nondisabled military retirees first received their COLAs on April 1. However, the FY1997-FY2005 budgets, enacted in 1996-2004 respectively, contained no changes in the COLA formula. Hence, the FY1997-FY2005 military retirement COLAs were first paid on January 1 of each of those years, respectively, to all classes of military retirees. These nine years are the longest period since military retirement COLAs were first authorized in 1963 in which no legislative changes in the COLA mechanism have been made; the seven years FY1999-FY2005, calendar years 1998-2004, are the longest period in which no COLA cuts have even been proposed, let alone enacted.