Updated: January 6, 2009

Many people who receive monthly annuity payments from the Federal Employees Retirement System (FERS) will receive a cost-of-living adjustment (COLA) effective December 1, 2008. They will receive the increase in their January 1, 2009, annuity payment. The maximum increase is 4.8% for FERS annuitants.

Annuitants who have been retired at least 1 year will receive the full COLA, or maximum increase. To get the full COLA, a retiree's annuity has to begin no later than
December 31, 2007.

Retirees whose annuities begin between January 1, 2008, and November 30, 2008, will receive a prorated COLA. They will receive one-twelfth of the applicable increase for each month they received an annuity. The following table shows the prorated percentage increases according to the month in which the annuity began.  

FERS COLA PRORATION TABLE

Month Annuity Began	Amount of Percentage Increase
December 2007 or earlier	4.8%
January 2008	4.4%
February 2008	4.0%
March 2008	3.6%
April 2008	3.2%
May 2008	2.8%
June 2008	2.4%
July 2008	2.0%
August 2008	1.6%
September 2008	1.2%
October 2008	0.8%
November 2008	0.4%

Related Articles & Resources

·  CSRS COLA Proration Table ·  2009 Federal Retiree COLA: CSRS COLA: 5.8% - FERS COLA: 4.8%