Information verified through October 19, 2026.
The short answer. The Social Security Administration announced a 3.6% cost-of-living adjustment (COLA) for 2027 on October 14, 2026, and Military Times reports it takes effect in January 2027 for both military retired pay and VA benefits. Your Combat-Related Special Compensation (CRSC) should rise with it, but not always by exactly 3.6%. CRSC is the lesser of two numbers: the VA-rate value of your approved combat-related conditions, or the retired pay you waived. The increase you see depends on which number is the cap, VA’s published 2027 table, and your retirement system. As of today VA has not posted that table.
Key takeaways
- The COLA is official: 3.6%. Social Security announced it on October 14, 2026, up from 2.8% for 2026.
- CRSC has two sides. The lesser of the VA-rate value of your approved conditions or your waived retired pay. A COLA moves both.
- Most retirees should see something close to 3.6%. A small group with a reduced retired-pay COLA formula may see less where retired pay is the cap.
- VA has not published 2027 rates yet. Its page still showed the table effective December 1, 2025 when we checked on October 19.
- A COLA is not a pay raise and not new eligibility. It changes dollars on conditions already approved. It does not add a condition.
What was announced
Social Security’s October 14 release describes a 3.6% benefit increase for 2027. Military Times calls it the biggest increase in four years and notes the 2026 figure was 2.8%. The National Guard Association of the United States (NGAUS) reports that, by law, military retirees and veterans receiving disability benefits get the same COLA as Social Security recipients. For a sense of scale, Military Times works one example: a retiree with $2,500 in monthly retired pay would see about $90 more.
Two timing points are worth keeping straight. Under 10 U.S.C. § 1401a, the retired-pay increase takes effect each December 1, measured against the quarter ending September 30. Military Times reports the higher amounts reach military retirees and VA beneficiaries in January 2027. We have not found a DFAS or VA notice giving a payment date, so watch your own statement.
Why CRSC does not move in a straight line
Most monthly benefits have one input. CRSC has two. Under 10 U.S.C. § 1413a and DoD’s Financial Management Regulation (FMR), Volume 7B, Chapter 63, the payment is the lesser of the VA compensation value of the conditions your branch approved as combat-related, or the amount of retired pay you gave up because of your VA compensation. For Chapter 61 medical retirees, the retired-pay side is generally the longevity amount rather than the disability retired pay.
| If this side is the cap | What the COLA changes | What to expect |
|---|---|---|
| VA-rate value of approved combat-related conditions | VA’s compensation table is adjusted by the COLA. | A rise close to 3.6%, but the figure follows VA’s published table, not our arithmetic. |
| Waived retired pay | Retired pay is adjusted under § 1401a. | Generally the full COLA. Retirees who took the Career Status Bonus get the percentage minus one point under § 1401a(b)(3). |
| Chapter 61 longevity cap | Retired pay, including the longevity amount, is adjusted. | Follows the retired-pay COLA that applies to you. |
Here is an illustration with made-up numbers. Suppose your approved conditions are worth $1,400 a month at VA rates and your waived retired pay is higher. The VA side is the cap, so a 3.6% increase would be about $50, taking $1,400 to roughly $1,450. That is our arithmetic, not a VA rate. VA publishes its own table, and a rate that rounds differently can move your number by a dollar or two. Our 2027 VA disability rates guide shows how to check the official table yourself.
The one group that can see less than 3.6%
Section 1401a(b)(3) applies a reduced COLA to people who first became military members on or after August 1, 1986 and elected the Career Status Bonus. For them the retired-pay increase is the COLA percentage minus one point. If you are in that group and your retired pay, not your VA-rate value, is what caps your CRSC, your CRSC could rise by roughly 2.6% rather than 3.6%. Retirees in the modernized retirement system get the full percentage under § 1401a(b)(5). If you are not sure which rule applies to you, your DFAS retired pay statement and DFAS Customer Care can tell you. We have not seen DFAS publish a worked CRSC example for this case, so treat it as the statute’s effect, not a DFAS-confirmed figure.
COLA versus the military pay raise
Two different numbers are in the news, and they get mixed up. The COLA, 3.6%, adjusts retired pay and VA benefits for inflation. The military pay raise debated in the fiscal 2027 National Defense Authorization Act (NDAA) applies to service members. NGAUS reports the House approved a tiered 5% to 7% raise and the Senate proposed a flat 3.6%, with the two versions to be reconciled after the midterm elections. NGAUS also quotes the reminder that “COLAs are not pay raises.” Whatever Congress does with the NDAA raise, it is a separate matter from the 3.6% retiree COLA announced on October 14.
What a COLA does not do
A COLA raises the dollar value of conditions already approved. It does not make a new condition combat-related, change an effective date, or reach a condition your branch has not decided. If part of your VA rating was never filed for CRSC, or was denied for insufficient evidence, the COLA does not touch it. That is the larger lever for most retirees, and it is why we keep an eye on the CRSC calculator alongside the news. Whether a given condition qualifies is decided by your branch’s CRSC board on your records, and nobody can promise an outcome.
What this means for military retirees
If you already receive CRSC, expect a modest, mostly automatic increase and confirm it when it posts. If you have not applied, the COLA does not change your eligibility, and it does not make waiting any more useful. Since Soto v. United States (No. 24-320, June 12, 2025) removed the six-year limit on retroactive CRSC, and DoD rescinded its application-date limits on May 14, 2026, the effective date for each condition still turns on your retirement date and the date VA service-connected that condition. Our back pay guide walks through it. If you are a Chapter 61 retiree, the medical retiree guide explains the longevity cap.
What you should do now
- Save your current Retiree Account Statement (RAS) so you have a before picture. Our guide to reading your RAS shows the gross, VA waiver, and net lines.
- Note your current monthly CRSC and which number appears to cap it: your VA-rate value or your retired pay.
- When VA posts its 2027 table, compare it to your VA rating. Do not rely on third-party charts for exact dollars.
- When the January amount posts, divide the new CRSC by the old one. A figure far from 3.6% is worth a call to DFAS at 800-321-1080 or a note to your branch.
- Find out whether you took the Career Status Bonus, since it changes the retired-pay COLA.
- If you have a VA-rated condition that was never filed for CRSC, or was denied, gather the records now. Your branch page has filing details: Army, Navy, Air Force, Marine Corps, Space Force, Coast Guard.
Document checklist
Latest Retiree Account Statement · CRSC award letter · VA rating decision(s) · DD-214 · Retirement orders or DD-214 showing retirement system · Any bonus election paperwork
If a condition was denied, CRSC denied for insufficient evidence covers the reconsideration process, and how CRSC is calculated has the lesser-of math in full.
Frequently asked questions
Will my CRSC go up 3.6% in 2027?
Often close to it, but not automatically. CRSC is the lesser of the VA-rate value of your approved combat-related conditions and your waived retired pay. Both sides are tied to cost-of-living increases, so whichever one caps you should rise, but the exact change depends on VA’s published table, rounding, and your retirement system. Check your Retiree Account Statement once the new amount posts.
When will the 2027 COLA show up in my payment?
Social Security announced the 3.6% increase on October 14, 2026. Military Times reports the increase takes effect in January 2027 for military retired pay and VA benefits. Under 10 U.S.C. § 1401a the retired-pay increase is effective each December 1, and payments post afterward. Watch your DFAS statement for the actual date.
Has VA published the 2027 compensation rates?
As of October 19, 2026, VA’s compensation rates page still showed the table effective December 1, 2025. Until VA posts a 2027 table, any 2027 dollar figure is arithmetic, not an official rate.
Is the 3.6% COLA the same as the military pay raise in the NDAA?
No. The COLA adjusts retired pay and VA benefits for inflation. The pay raise being debated in the fiscal 2027 National Defense Authorization Act applies to people serving now. NGAUS reports the House approved a tiered 5% to 7% raise and the Senate proposed a flat 3.6%, with the two versions still to be reconciled.
Does a COLA change whether a condition is combat-related?
No. A COLA changes dollar amounts for conditions your branch has already approved. It does not add conditions, change effective dates, or change eligibility. A condition that has not been approved for CRSC is a separate question.
The bottom line
The 2027 COLA is 3.6% and official. CRSC rides on two inputs that both get a cost-of-living adjustment, so most retirees should see an increase near that figure, with the exact dollars set by VA’s forthcoming table and the retired-pay rules that apply to you. The one place to watch is a Career Status Bonus retiree whose retired pay is the cap. Save your statement now, compare it in January, and remember that a COLA only changes the value of what is already approved.
Sources
- Social Security Administration, Social Security Announces 3.6 Percent Benefit Increase for 2027 (October 14, 2026)
- Military Times, Here’s the 2027 cost-of-living increase for retirees, veterans (October 14, 2026)
- NGAUS, Retirees, Veterans to Get 3.6% COLA in 2027
- 10 U.S.C. § 1401a, Adjustment of retired pay (COLA)
- 10 U.S.C. § 1413a, Combat-related special compensation
- DoD 7000.14-R, Financial Management Regulation, Volume 7B, Chapter 63 (June 2024)
- VA, Veteran disability compensation rates (table effective December 1, 2025, as viewed October 19, 2026)
- DFAS, Combat-Related Special Compensation
- NVLSP, Soto v. United States and Retroactive CRSC FAQs
This article is provided for general educational purposes and is not legal advice, financial advice, or a guarantee of CRSC eligibility, approval, effective date, or payment amount. Rules, guidance, and implementation procedures can change. Veterans should verify current requirements with their military department, DFAS, the Department of Veterans Affairs, or an appropriately accredited representative.