Retiree Account Statement
DFAS decided to send the Retiree Account Statement (RAS) despite the zero COLA for 2010 because for many Retirees the annual RAS is the only communication they receive from DFAS. More info about zero COLA is on the DFAS website, www.dfas.mil.
The annual RAS includes additional information that is helpful to the member. It provides.... For example, this year (2009) the service asked that R&A add a message...
Due to an increase in the Federal Income Tax Withholding (FITW), most Retirees will see a reduction in their net retired pay.
OK, technically they didn't say "hey, let's raise the taxes for military retirees" (and I "assume" others)... they changed the FITW which will result in less money for the retiree and more money for the government. A tax is a tax is a tax.
As you read, adding insult to injury, not only are they withholding more, retirees won't get an annual cost of living increase either. So, they're getting further behind in relation to inflation, dollar value, etc. AND the government is keeping more of the money they earned and sacrificed for through their years in the military.