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Federal Daily News

Federal retirees to receive 2012 COLA

Retirees will get a cost-of-living adjustment next year. Civil Service Retirement System retirees will receive a COLA of 3.6 percent—the same as the Social Security COLA. Eligible Federal Employees Retirement System retirees will receive a COLA of 2.6 percent.

The COLA increases are based on the rise—if any—in the average Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W, for July, August and September.

This year, the average for those months rose 3.6 percent above the last CPI-W measurement high enough to generate a COLA—the July to August 2008 average that generated a COLA for 2009. For the last two years, there have been no COLAs due to the declining prices of the consumer goods that make up the index.

Under current law, CSRS retirees receive the full amount of the CPI-W increase as a COLA. According to the rules for setting FERS COLAs, if the CPI-W index is above 3 percent, eligible FERS retirees receive a COLA that is 1 percentage point less.


 

Reader comments

Fri, Dec 30, 2011 Rath Anderson Arizona

I am a FERS retiree in the Air National Guard with 20 years of FERS civilian employment. I was retired as a Military Officer after 30 years of commissioned military service at age 57 in 2010. I was also retired from my technician position because I was no longer able to maintain my military position. My question: - Will I receive a COLA of 2.6 percent in 2012 though I am not yet 62 years of age?

Wed, Dec 21, 2011 pamela United States

will the spouse receiving a death annuity receive a raise in 2012

Fri, Dec 16, 2011

Damn...it's about time!! Each year my (our) insurance deduction is raised but no COLA increase since 2009. I'm making less now than I was 2 years ago while inflation goes up. Thank God someone woke up!

Fri, Nov 18, 2011

I am retiring CSRS on Dec 2, 2011. Will I get the full COLA for the month of Dec. or will it be prorated to Jan.1. Thanks

Sat, Oct 29, 2011

Regarding your post on 10/25 . It may not have been called a COLA but I know that there were significant pay grade and step increases. As a result of these raises the amounts of their retirement matching amounts increased respectfully. One agency increased the pay grade from GS11 to GS12 for the field and GS12 to GS13 for the supervisors. What did that cost the no COLA increase when you are talking 20,000 plus employees?

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