By Jennifer Liberto@CNNMoneyFebruary 12, 2014: 4:07 PM ET
The Senate overwhelmingly passed a bill Wednesday to restore military pension increases, which is good news for 750,000 military retirees who had tens of thousands of dollars at stake.
The Senate voted 95-to-3 in favor of the bill, which the House passed Tuesday. The measure reinstates cost-of-living hikes in the pensions for all current retirees and anyone who enlisted before Jan. 1.
President Obama is expected to sign the bill in the coming days.
The cuts would decrease the pensions of 750,000 military personnel. Over the course of their lifetime, those cuts would trim, on average, around $69,000 from enlisted members' pensions and $87,000 from officers' pensions, according to a Congressional Research Service report this month.
The bill does not extend pension increases for military personnel who enlisted after Jan. 1.
Military groups were happy that Congress moved to take a "modest step in the right direction" but they had pushed Congress to repeal the cuts for all enlistees, including those who joined after Jan. 1.
"We would prefer a full repeal of the provision ...not piecemeal changes to the military pay and benefit package without understanding the long term unintended consequences to retention and readiness," said retired Army Col. Michael Barron, Colonel, deputy director of government relations for the Military Officers Association of America.
While lawmakers have generally agreed they want to help military retirees, they've stumbled on how to pay for reinstating the increases, which was originally priced to cost around $6 billion for the full repeal.
The House bill would pay to revoke the cuts for current retirees and those already in the military by extending for one year budget cuts from the so-called "sequester." That idea was initially rejected by Senate Majority Leader Harry Reid, aides say, but he changed his mind.
Several conservative Democrats facing tough re-elections in their red-leaning states pushed their party to take up the bill.
"It's true that our country faces difficult fiscal challenges, but we cannot balance the budget on the backs of the military men and women who have served us," said Sen. Kay Hagan of North Carolina.
Most military retirees are a lot younger than private sector retirees. They enlist in their 20's and retire in their 40's. Very few stay on until they reach 62 -- those who are lucky enough to escape major injuries at war, or rise to higher echelons in the military system.