After extending the nation's borrowing authority for the next year, the Senate voted Wednesday to restore the cost of living adjustment for military retirees' benefits after it was cut as part of the Murray-Ryan budget deal in December.

The Senate voted 95 to 3 to restore the benefits one day after the bill cleared the House. It now heads to President Obama for his signature.

In December, the budget deal crafted by Sen. Patty Murray, D-Wash., and Rep. Paul Ryan, R-Wis., cut the cost of living adjustment for military pensions to one percent below the rate of inflation for veterans younger than age 62 starting in 2015.

The bill will restore the COLA cuts for all current retirees and anyone who enlisted before Jan. 1. The bill will pay to restore the COLA benefits by extending Medicare cuts that went into place during the so-called "sequester" last year. Sen. Mark Pryor, D-Ark., had floated his own version of the bill, which did not include additional cuts to pay for the restoration of benefits, but the Senate agreed to adopt the House measure instead.