Can early saving make up for a pay freeze and the reduced retiree cost-of-living adjustment (COLA)? A reader asked, and this guide answers with a worked example for a hypothetical 30-year-old. One frozen pay year costs about $1,088 a year in pension. The bigger cost comes from Federal Employees Retirement System (FERS) rules: someone who retires at 60 gets no COLA until turning 62, and the COLA runs below inflation once inflation passes 2%. In this example, that gap totals about $48,900 over ten years. Learn how extra Thrift Savings Plan (TSP) saving can offset both, and how much (and how soon) you need to start.
The TSP G Fund Is Safe From Market Losses — But Not From Inflation
The TSP’s G Fund protects your savings from market losses — its balance won’t decline when stocks fall or bond prices drop. But that protection doesn’t guarantee your savings will keep pace with inflation. When prices rise faster than the G Fund’s return, your account can hold more dollars while buying less than it used to. This guide’s analysis compares official G Fund returns with federal inflation data and examines the trade-off between market safety and long-term growth. It also considers how your retirement timeline, withdrawal plans and ability to tolerate market declines can affect the role the G Fund plays in your TSP.
The 2027 COLA: What Federal Retirees Can Expect and When
The 2027 cost-of-living adjustment is official: 3.6% for Social Security and CSRS retirees, and 2.6% for eligible FERS retirees. This guide covers when the increase takes effect, how to see the new amount in a my Social Security or OPM online account, why Medicare and health insurance changes reduce the net increase, and the key dates to watch between now and the first higher payment in January.
How a Late-Career Promotion Changes Your High-3 and Your FERS Pension
OPM has finalized a rule ending the 52-week time-in-grade wait for GS promotions, effective January 19, 2027. Whether promotions come sooner will vary by agency, but timing matters for your pension either way. This guide shows what a promotion 3, 2 or 1 year before retirement does to your high-3 and your FERS annuity.
Did You Get $90 From Social Security? Which Federal Retirees Qualify for the Medicare Rebate
A $90 payment from Social Security landed in some bank accounts this month, and many federal retirees want to know why they got it, or why they did not. It is a one-time rebate tied to Medicare Part B premiums. Eligibility depends on Medicare coverage, not federal service: retirees with Original Medicare Part B qualify unless they pay the income-related surcharge or receive Medicaid help, while Medicare Advantage enrollees and people without Part B are excluded. Here is who gets the payment, how it differs from an FEHB plan’s Part B reimbursement, and when it arrives.
TSP Week in Review: Oct. 12-16, 2026
A hotter inflation report and a sharp selloff in technology shares pushed the TSP’s stock funds lower, while the bond funds held up. See how each core and Lifecycle funds finished the week, and what could move them next
2027 FEHB Plan Changes: Nine Plans Leaving and UnitedHealthcare’s HSA Plan Ending in 12 States
Nine FEHB plan options and one PSHB option are ending in 2027, UnitedHealthcare’s HSA-eligible plan is dropping 12 states, and Presbyterian and Mail Handlers are changing too. Enrollees who do nothing move into an OPM default that costs less but is built differently, and Open Season closes December 14. See the full list, what the default costs, and what to check before the deadline passes.
What the 2027 Pay Freeze and FERS COLA Do to Your Pension When Retiring
A FERS pension can lose purchasing power long after retirement, and a federal pay freeze can reduce the pension before it even begins. Employees retiring before age 62 generally receive no cost-of-living adjustments (COLAs) until they reach that age, and the FERS supplement receives no COLAs at all. Even after COLAs begin, FERS adjustments can fall short of inflation, allowing the gap to grow over time. Meanwhile, a frozen pay year can lower the high-3 salary used to calculate the starting pension. What does that mean in dollars? In one hypothetical ten-year illustration with 3.6% annual inflation, the COLA rules leave a FERS pension nearly $50,000 behind one that is fully adjusted for inflation. A worked example follows a federal employee retiring at the minimum retirement age and shows how both the pay freeze and the COLA rules affect retirement income.
2027 CSRS / FERS COLA Announced for Federal Retirees
The Social Security Administration has announced a larger cost-of-living adjustment (COLA) for 2027, up from this year’s increase. CSRS retirees and Social Security beneficiaries get the full amount, but FERS retirees age 62 and older get a lower COLA under the FERS reduction formula. Use the included free COLA calculator on this page to enter your annuity and see your own increase in dollars, plus how much of it is left after the projected 2027 Medicare Part B premium and your 2027 FEHB premium change.
OPM Retirement Backlog Falls Below 10,000 in September 2026
OPM’s retirement backlog fell to 8,814 claims in September 2026, down 86% from its February peak, as average processing time dropped to 66 days.