• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer

My Federal Retirement

Financial Planning Resources for Federal & Postal Employees

  • Thrift Savings Plan
  • FERS & CSRS
  • Pay & COLAs
  • Find A Professional
  • Workshops
  • Podcast
  • Subscribe

Lawmaker Reintroduces Equal COLA Act for Federal Retirees

February 3, 2021 - By My Federal Retirement

Rep. Gerry Connolly (D-VA) last month reintroduced legislation which would increase cost of living adjustments (COLA) for some retired federal employees.

If passed, Equal COLA Act (H.R. 304) would guarantee that federal retirees in the Federal Employee Retirement System (FERS) and the Civil Service Retirement System (CSRS) both receive the same annual percentage cost of living increase each year. The legislation would tie both federal retirement system COLAs annual increase to the CPI-W.

Connolly last reintroduced the bill in 2019.

How is the difference between the CSRS COLA and FERS COLA determined?

Under current law, the following table summarizes the FERS COLA in relation to the CSRS COLA:

If the CSRS COLA is…

Then the FERS COLA is…

Up to 2.0%

2.0% to 3.0%

Above 3.0%

Same as CSRS COLA

2.0%

CSRS COLA minus 1.0%

The National Active and Retired Federal Employees Associations (NARFE) has supported this type of change in the past.   A statement from NARFE’s president in 2019 was: “Nearly 800,000 FERS retirees are paying the price for a flawed law dating back to the 1980s that capped their COLA at 2 percent when consumer prices increase between 2 and 3 percent per year. The Equal COLA Act is common sense legislation that would change this unfair policy to ensure FERS retirees receive a full COLA each year, and as a result, create parity between the FERS COLA and the Civil Service Retirement System (CSRS) COLA”

Related:

  • Lawmaker Reintroduces Equal COLA Act for FERS Retirees
  • Federal Retiree COLA History: CSRS COLA and FERS COLA
  • How Waiver of RMD Payments Affects Federal Employees, Retirees in 2020 Under CARES Act
  • House Bill Would Increase COLA for Many Federal Retirees

Filed Under: Articles

Read next…

 

Free Publications

Primary Sidebar

Recent Must-Reads

  • How Eligible Individuals Can Claim Recovery Rebate Credit If They Missed Economic Impact Payments
  • 3 Crucial Federal Retirement Choices

Footer

About Us
Contact Us
Advertise

Free Email Newsletter
Facebook
Twitter

Terms of Service
Privacy Policy

My Federal Retirement is not affiliated with the U.S. Federal Government.
Copyright © 2007-2021 My Federal Retirement. All Rights Reserved. Reproduction without permission prohibited.