Can't have a discussion about military, federal employee, and Social Security COLAS without having a discussion about CPI and the CPI-W. As I understand, the rationale behind putting Federal FERS retirees on the -1% "diet cola" in 1984 was that the CPI-W overstates actual cost-of-living inflation for the average retiree. (perhaps we "geezers" eat more chicken than steak, or something like that?) I'm guessing they're using the same rationale with this military retiree thing?
I'm certainly no expert on the ins & outs of the various CPI's .... but could be they will at some point eventually develop a brand new CPI-? for all Federal and Military retirees as well as Social Security recipients? Simpson-Bowles as I understand recommend to Congress all Federal COLAS be tied to the "chained CPI" ... whatever that is.
(as an aside, and not to derail - but I s'pose there's nothing preventing someone coming up with the idea to throw us all off our current Federal & military retiree medical packages and onto the State insurance exchanges with a big "subsidy" in order to bolster up that system. Or perhaps that idea's already been floated. Who knows? Anything is possible I guess)