The 2024 COLA increase for VA disability benefits will be 3.2%. This is significantly smaller than the recent bump from 8.7% due to high inflation rates.
Congress sets the amount of the COLA adjustment based on economic inflation that affects disabled Veterans and all Americans. You do not need to apply for this benefit; it is automatically awarded annually.
Cost-of-Living Adjustment (COLA)
Each year, the VA increases the purchasing power of its disability benefits to ensure disabled Veterans have enough money to afford necessities. This is known as a cost-of-living adjustment, or COLA.
Each yearly increase is based on inflation, typically measured by the Consumer Price Index (CPI), a measure of the average change in the prices of a wide range of goods and services purchased by Americans. SSA and the VA use this measure to determine COLA increases for Social Security benefits, military retirement pay, Survivor Benefit Plan annuities, and VA compensation and pension payments.
Last year, this COLA was the highest in decades and reflected high inflation. This year’s COLA is expected to be less dramatic but will still significantly boost disabled Veterans. The increase will be applied to Veteran’s 2024 disability benefits. Those who qualify can receive an increase in their disability compensation check or retirement pension.
Disability Benefits
Disability benefits are available to help disabled veterans with everyday living expenses. VA provides different compensation rates for varying disabilities, depending on how severe the condition is and how much it interferes with your daily life.
The VA determines your disability rating by going over your service treatment records, private medical records and evidence from outside sources. Then, it uses a combination of these factors to determine your overall efficiency rating. Many disabled veterans are rated for more than one condition. When calculating your combined rating, the VA takes each condition’s percentage and adds them together. You can visit this site to learn more about these benefits.
You may also be eligible for special monthly compensation (SMC), which is an extra tax-free benefit that can be awarded to some disabled veterans or their surviving spouses and children. For example, SMC is awarded to those with severe disabilities requiring another person’s aid and attendance, such as a live-in nurse. This amount is in addition to your regular disability pay.
Dependency and Indemnity Compensation (DIC)
The 2024 COLA increase means that single veterans who receive disability benefits will see an increase in their compensation payments. These increases are based on the cost of living and vary according to each Veteran’s disability rating.
The COLA increase for 2024 is 3.2 percent, which matches the increase in Social Security benefits announced in October. As the Social Security Administration explains, each year, the SSA determines the COLA to reflect changes in the prices of a market basket of goods and services.
There are a few things to keep in mind about these increases. First, you must have a service-connected disability to receive these benefits. VA determines this by a thorough internal review of your medical history, including in-service treatment records, private medical evidence, and more. This determination is called your disability rating, and it determines how much you’ll receive each month for disability compensation, clothing allowance, and dependency and indemnity compensation.
Special Monthly Compensation (SMC)
If your disabilities are severe and permanently debilitating, you might qualify for Special Monthly Compensation (SMC). SMC helps pay for non-economic losses that prevent you from functioning as well as you did before military service. This could include losing a limb, hearing or eyesight. It also causes bowel or bladder control issues, loss of reproductive organs, and being housebound or bedridden. You must have proof that your disabilities happened while in the military or that your time in the military aggravated them. It would help if you worked with your local VA regional office or a VSO to gather documentation of your disabilities and treatment history.
SMC is a separate benefit from disability compensation, and the benefits are not paid in addition. However, annual cost-of-living adjustments ensure that SMC payments keep up with inflation. To access SMC, you must meet criteria that include having a service-connected disability rated at 100% or higher. The lettered categories of SMC each have their specific requirements.
Arman Ali, respects both business and technology. He enjoys writing about new business and technical developments. He has previously written content for numerous SaaS and IT organizations. He also enjoys reading about emerging technical trends and advances.
