Last Updated: October 14, 2026 Reading Time: 8 min
The 2027 military retiree COLA is official: 3.6% for High-3, BRS and Final Pay retirees, and 2.6% for REDUX/CSB retirees. BLS published September CPI-W at 330.654 on October 14, 2026, completing the three-month average. The two-month running count read 3.3%, but a flat September was never going to hold it. Here is the formula, the math with real index values, and the proration trap that surprises everyone who retired this year.
The Formula, With Real Numbers
Military retired pay COLAs come from 10 U.S.C. § 1401a: the average CPI-W for the third quarter (July, August, September) over the highest previous third-quarter average. It is the same mechanism Social Security uses, on the same index, announced the same October morning.
The 2025 baseline, from the BLS series itself:
| Month | 2025 CPI-W |
|---|---|
| July 2025 | 316.349 |
| August 2025 | 317.306 |
| September 2025 | 318.139 |
| Q3 2025 average (baseline) | 317.265 |
And the 2026 side, all three counting months:
| Month | 2026 CPI-W | vs. baseline |
|---|---|---|
| July 2026 | 327.104 (released Aug 12) | +3.10% |
| August 2026 | 328.481 (released Sep 11) | +3.54% |
| September 2026 | 330.654 (released Oct 14) | +4.22% |
| Q3 2026 average | 328.746 | +3.62%, rounds to 3.6% |
October 14, 2026 Update: The 2027 COLA Is Official
The 2027 military retiree COLA is 3.6%. BLS posted September CPI-W at 330.654 on October 14, 2026. With July at 327.104 and August at 328.481, the Q3 average of 328.746 is 3.6% above the 317.265 baseline. High-3, BRS and Final Pay retirees get the full 3.6% under 10 U.S.C. 1401a(b)(2). REDUX retirees who took the Career Status Bonus get 2.6%, with a separate one-time catch-up at age 62 under 10 U.S.C. 1410, after which the reduced COLA formula resumes. The increase is effective December 1, 2026 and first paid in the January 2027 deposit.
Where the COLA Lands From Here
July's print was essentially flat against June (+0.01%), and August added 0.42%. September's 0.66% rise carried the three-month average to 3.6%, at the top of the 3.3-3.6% range forecasters had drawn after August. The early-summer 3.7-3.8% projections came in just above the final number.
The 2027 Military Retirement Pay Increase Chart
Monthly increase at the official 3.6% COLA, by illustrative retired-pay levels (FedTools computation from the 10 U.S.C. 1401a formula):
| Monthly retired pay | Monthly increase at 3.6% | New monthly pay | Annual increase |
|---|---|---|---|
| $1,500 (junior enlisted 20-year) | $54.00 | $1,554.00 | $648 |
| $2,500 (senior NCO) | $90.00 | $2,590.00 | $1,080 |
| $3,000 (E-8 over 24) | $108.00 | $3,108.00 | $1,296 |
| $4,000 (mid-grade officer) | $144.00 | $4,144.00 | $1,728 |
| $5,000 (O-5 over 24) | $180.00 | $5,180.00 | $2,160 |
| $6,500 (senior officer) | $234.00 | $6,734.00 | $2,808 |
REDUX vs High-3 at the same gross retired pay (REDUX gets 2.6%, High-3 and BRS get 3.6%):
| Monthly retired pay | High-3 / BRS raise (3.6%) | REDUX raise (2.6%) | Monthly gap | Annual gap |
|---|---|---|---|---|
| $1,500 | $54.00 | $39.00 | $15.00 | $180 |
| $2,500 | $90.00 | $65.00 | $25.00 | $300 |
| $3,000 | $108.00 | $78.00 | $30.00 | $360 |
| $4,000 | $144.00 | $104.00 | $40.00 | $480 |
| $5,000 | $180.00 | $130.00 | $50.00 | $600 |
| $6,500 | $234.00 | $169.00 | $65.00 | $780 |
REDUX retirees: subtract one percentage point before multiplying (the 3.6% announcement pays you 2.6%). Your exact figure is your gross retired pay times the announced percentage, effective December 1, first paid in the January 2027 DFAS deposit. Model your full stack, retired pay plus VA compensation plus any future GS salary, with our Military Retirement Income Calculator.
Who Gets Full, Who Gets Clipped
High-3 and BRS retirees: the full figure. No caps, no bands. (BRS trimmed the multiplier at retirement, not the COLA afterward.)
REDUX/CSB retirees: minus one point, with a one-time catch-up at 62. The $30,000 Career Status Bonus came with COLA-minus-1%. The program closed to new elections January 1, 2018. Existing REDUX retirees receive a one-time recomputation at 62 under 10 U.S.C. § 1410, after which the reduced annual COLAs resume.
The contrast worth knowing if you're a military retiree with FERS friends or a second federal career: FERS retirees face a diet-COLA (capped at 2% in the 2-3% zone; CPI-W minus 1 above 3%), and CSRS/Social Security get the full figure. At the 3.6% announcement, a military High-3 retiree gets 3.6%, a FERS annuitant age 62 or over 2.6%. We track the civilian side in the 2027 COLA tracker for federal retirees.
The First-Year Proration Trap for 2026 Retirees
If you retired (or will retire) during 2026, your first COLA is not automatically the full 3.6%. For High-3 retirees covered by 10 U.S.C. § 1401a(d), the first adjustment compares the current base-quarter CPI index with the index for the quarter immediately before retirement; it is not automatically three-quarters or one-half of the full annual COLA. REDUX first adjustments follow the separate calculation in § 1401a(e), so confirm your retirement-system and quarter-specific adjustment with DFAS. Retire after the September 2026 base quarter and your first adjustment can be zero, with the first full COLA arriving December 2027.
This is routinely missed in retirement planning and almost never covered in transition briefs. If your retirement date is flexible around a quarter boundary, the proration schedule is worth a look before you pick it.
Dates That Finish the Number
| Date | Event |
|---|---|
| September 11, 2026 | August CPI-W 328.481 (counting month 2 of 3) |
| October 14, 2026 | September CPI-W 330.654; 2027 COLA set at 3.6% (REDUX 2.6%) |
| December 1, 2026 | COLA effective date |
| January 2027 | First higher DFAS payment |
Model Your Full Retirement Income
Use our free Military Retirement Income Calculator to model your retired pay, VA compensation and concurrent-receipt offsets at current rates, then apply the 3.6% COLA separately using the tables above. Try it now →
Frequently Asked Questions
What is the 2027 military retiree COLA?
3.6%. BLS published September 2026 CPI-W at 330.654 on October 14; with July at 327.104 and August at 328.481, the Q3 average of 328.746 runs 3.6% above the 317.265 baseline. High-3, BRS and Final Pay retirees get 3.6%; REDUX/CSB retirees get 2.6%.
Is this the same as the 2027 military pay raise?
No. The military basic-pay raise is a separate adjustment for active-duty pay; our 2027 military pay raise tracker covers current policy. The COLA covers retired pay and comes from the CPI-W formula, not Congress.
Do REDUX retirees get the full COLA?
No. For 2027 the standard REDUX COLA is 2.6%, the announced 3.6% minus one percentage point, as part of the Career Status Bonus trade they elected. A one-time catch-up recomputation occurs at age 62 under 10 U.S.C. 1410; after that, annual COLAs again use the reduced formula. The program closed to new entrants in 2018.
When does the money show up?
Effective December 1, 2026; the first increased deposit is the January 2027 DFAS payment.
I retire in November 2026. What's my first COLA?
For High-3, a November 2026 retirement produces a zero December 2026 adjustment under the CPI-index comparison in 10 U.S.C. § 1401a(d). The next COLA is effective December 1, 2027, paid January 2028. REDUX uses § 1401a(e); confirm your system with DFAS.
Related Resources
- 2027 COLA Tracker for Federal Retirees: The civilian companion, updated the same mornings.
- 2027 Military Pay Raise by Grade: The active-duty raise this COLA is often confused with.
- GS Pay Scale 2027: Projected Tables and Raise Tracker: If you are stacking a GS job on retired pay, the civilian side of your 2027 raise.
- Military Retiree to Federal Civilian: The Dual Pension Path: Stacking a GS career on top of retired pay.
- SBP Calculator: What the survivor benefit costs against the annuity it protects.
Sources: BLS CPI-W series CWUR0000SA0 (index values pulled from the public API, October 14, 2026) · BLS CPI news release, September 2026 · 10 U.S.C. § 1410 · 10 U.S.C. § 1401a · 5 U.S.C. § 8462 (FERS COLA comparison) · DFAS REDUX/CSB guidance