The 2027 COLA is 3.6 percent, but most FERS retirees will receive 2.6 percent while CSRS retirees get the full amount. This article explains the diet COLA rules, shows what the one-point gap costs in dollars over six years, and reviews where the Equal COLA Act stands in Congress, including bill numbers, cosponsor counts and the cost debate.
FERS (Federal Employees Retirement System)
What a Pay Freeze and the Reduced FERS COLA Cost Over a 30-Year Career
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 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.
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.
2027 COLA Calculator for Federal Retirees (CSRS and FERS)
This free online calculator for federal retirees shows what the 2027 cost-of-living adjustment (COLA) means for your Civil Service Retirement System (CSRS) or Federal Employees Retirement System (FERS) annuity, and how much of the increase is left after the Medicare Part B premium and your Federal Employees Health Benefits (FEHB) premium change
2027 FERS / CSRS COLA: Estimate Narrows Ahead of October Announcement
The 2027 cost-of-living adjustment is one inflation report away from becoming official. With two of the three months that count toward the calculation already in hand, see where the major forecasters stand, what September’s CPI-W report still has to answer, and when the Social Security Administration is expected to announce the final number — plus what it means for FERS retirees under the reduced “diet COLA” formula.
Federal Employee Pay Raises vs. Retiree COLAs: How Each Is Determined
The federal employee pay raise and the retiree cost-of-living adjustment are determined differently and rarely land on the same number — here’s why, and what it means for retirement income planning.
House Republicans Push OPM to Review Federal Law Enforcement Retirement Classification
A group of House Republicans has asked OPM to reconsider how it classifies certain federal police forces for retirement purposes, arguing that officers at agencies like VA Police and the Pentagon Force Protection Agency perform law-enforcement-level duties without qualifying for enhanced retirement coverage. The push draws on a recent GAO report documenting the same disparity across 17 agencies, including higher attrition among officers without enhanced benefits. Nothing has changed yet for affected employees, but the story is worth tracking given the retirement formula differences at stake.