The Omnibus Reconciliation Act of 1982 ( P.L. 97-253 ; September 8, 1982) suspended previously existing permanent law pertaining to cost-of-living adjustments (COLAs) for federal civilian and military retirees. Much of the legislative and executive branch activity related to military retirement COLAs since 1983 has involved efforts to repeal or extend provisions of this legislation. Prior to enactment of the 1982 Act, military retirement COLAs had been paid on an annual basis, effective on March 1 of each year, and based on the percentage increase in the Consumer Price Index (CPI) of December of the preceding year over that of the December before that. For example, the 8.7% COLA, effective March 1, 1982, was based on the percentage increase in the CPI of December 1981 over that of December 1980. The 1982 Act provided that COLAs for FY1983, FY1984, and FY1985 would be effective on April 1, 1983, May 1, 1984, and June 1, 1985, respectively. It also provided for the COLAs of nondisabled military retirees under age 62 to be calculated according to a different formula designed to lower them relative to those of all other military retirees. A COLA of 3.3% was accordingly paid to nondisabled military retirees under 62, and a 3.9% COLA was paid to all other military retirees, effective April 1, 1983. In addition, the 1982 Act required deductions equal to the COLAs in their military retired pay from the pay of most federal civil servants who had previously retired from the military. This report examines executive and congressional COLA-related initiatives associated with each of the fiscal year budgeting processes from calendar year 1982 (FY1983) through calendar year 2000 (FY2001). 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 Reagan Administration's budget request for FY1984, submitted to the Congress in early 1983, contained several measures related to military retirement COLAs. The Administration proposed to: Cancel the FY1984 COLA scheduled for May 1, 1984. The FY1983 (April 1, 1983) and FY1985 (June 1, 1985) COLAs would occur as mandated by the Omnibus Reconciliation Act of 1982; Beginning in FY1986, limit COLAs for nondisabled retirees under age 62 to one-half of the actual percentage increase in the CPI (frequently referred to as a "half-COLA" or "diet COLA"). Nondisabled retirees 62 or older, retirees receiving disability retired pay, and survivor annuitants would continue to receive full COLAs. The First Concurrent Resolution on the FY1984 Budget ( H.Con.Res. 91 ), approved by the House and Senate on June 23, 1983, assumed that the effective date of the FY1984 COLA would be delayed until December 1, 1984, with all subsequent annual COLAs also effective on December 1. This would have had the effect of canceling the FY1984 COLA, while advancing the effective date of the FY1985 COLA by seven months. However, Congress adjourned on November 18, 1983, without enacting the proposed changes in substantive authorizing legislation. The COLA situation therefore remained as enacted in the Omnibus Reconciliation Act of 1982, under which the next military retirement COLA was to be effective on May 1, 1984. Two other COLA-related legislative proposals in 1983 received substantial attention but were not passed by the Congress: (1) the Administration proposal to institute a permanent "half-COLA" for nondisabled military retirees under 62, and (2) a provision of the Senate version of the FY1984 reconciliation bill that would have repealed the requirement instituted in the 1982 Act that most federally employed military retirees have an amount equal to the COLA they received be deducted from their civil service salaries. In FY1985 legislative action (calendar year 1984), the COLA provisions in the Omnibus Reconciliation Act of 1982 were largely negated. The Reagan Administration's FY1985 budget request, submitted in early 1984, contained several measures related to military retirement COLAs. 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. (This proposal, in conjunction with that described in the preceding paragraph, would therefore have resulted in no COLA being paid between April 1, 1983, and January 1, 1985.) At the same time, the period of time over which the CPI was measured to determine the extent of the COLA increase would have been modified to reflect the increase in the average CPI between the third quarters of successive years (i.e., the COLA paid to federal retirees on January 1, 1985, would be based on the percentage increase in the average CPI for the period June-September 1984 over the average for June-September 1983). The Omnibus Reconciliation Act of 1983 ( P.L. 98-270 ; April 18, 1984) was the legislative vehicle for these proposals and therefore for practical purposes repealed comparable provisions of the Omnibus Reconciliation Act of 1982. The Deficit Reduction Act of 1984 ( P.L. 98-369 ; July 18, 1984) repealed the provisions of the 1982 Act which required most military retirees working for the federal government to forfeit their military retired pay COLAs. It also changed the technical payment date for military retired pay (checks or electronic fund transfers) from the last business date of the current month (i.e., the 30 th or 31 st of most months) to the first business day of the next month. By pushing the twelfth monthly military retirement payment for FY1985 from September 30 to October 1, 1985—the first day of FY1986—this provision provided a one-time paper savings in FY1985 of $1.6 billion in military retirement outlays. The Second Supplemental Appropriation Act for FY1984 ( P.L. 98-396 ; August 22, 1984) had the practical effect of negating the provision of the 1982 Act which would have provided nondisabled military retirees under 62 a smaller COLA on January 1, 1985, than those granted all other military retirees. Thus, on January 1, 1985, all military retirees received a 3.5% COLA. The Reagan Administration's FY1986 Department of Defense (DOD) budget proposed to eliminate the military retired pay COLA scheduled for January 1, 1986; there would thus have been no COLA between that paid on January 1, 1985, and that scheduled for January 1, 1987, under existing law. The final Concurrent Resolution on the Budget ( S.Con.Res. 32 ; approved by both the House and the Senate on August 1, 1985) rejected the Administration's recommendation to cancel the FY1986 COLA, indicating initially that it would be paid as permanent law provided on January 1, 1986. However, the Balanced Budget and Emergency Deficit Control Act of 1985, also known as the Gramm-Rudman-Hollings (GRH) Act ( P.L. 99-177 ; December 12, 1985) provided that payment of the FY1986 COLA was to be at least temporarily suspended until other provisions of the GRH Act took effect, no earlier than March 1, 1986. Specifically, subsection 252(a)6(c) of GRH provided that "the amounts that would otherwise be expended" during this period for COLAs would be withheld. Payment of the FY1986 COLA was accordingly suspended between January 1, 1986, and March 1, 1986. The President, according to other provisions of GRH, then determined that payment of the FY1986 COLA had to be completely eliminated to assist in reducing the FY1986 federal deficit. It was therefore permanently canceled. On July 7, 1986, the Supreme Court held that the automatic spending provisions of GRH were unconstitutional; however, the Court stayed the effects of its decision for 60 days to give the Congress and the President time to enact the FY1986 GRH-mandated budget cuts into effect through the regular, pre-GRH legislative process if it so desired. On July 31, 1986, the President signed P.L. 99-366 , which ratified and affirmed the FY1986 GRH budget cuts, including the FY1986 COLA cancellation. The Reagan Administration's FY1987 DOD budget proposed to eliminate the military retired pay COLA scheduled for January 1, 1987. If accepted, this proposal would have meant that there would have been no COLA between that paid on January 1, 1985, and the one scheduled, under permanent law, for January 1, 1988. The final Concurrent Resolution on the FY1987 Budget ( S.Con.Res. 120 ; passed both House and Senate on June 26, 1986) assumed that full military retirement COLAs would be paid in FY1987 on the basis of permanent law. The Omnibus Budget Reconciliation Act of 1986 (Sec. 7001, Title VII, P.L. 99-509 ; October 21, 1986) also provided that full COLAs would be paid according to permanent law in calendar years 1987 through 1991, inclusive, to military retirees (and retirees covered by other federal retirement programs as well), if GRH-mandated spending cuts occur.