The Office of Personnel Management has announced details
for cost of living adjustments to be reflected in 2004
benefit payments to retired federal employees and surviving
family members.
The Civil Service Retirement System and the Organization
Retirement and Disability System are increasing by 2.1
percent, and the Federal Employees Retirement System and
FERS Special COLAs are set to go up 2.1 percent, for those
who have received benefits for at least one year, according
to OPM. (Reminder: If annuities have started later than one
year, COLAs are prorated by the number of months received
benefits have been received.)
FERS and FERS Special COLAs are not provided until age 62,
except for other special provision retirements, disability
and survivor benefits. FERS disability retirees get the
adjustment unless they are receiving a disability annuity
based on 60 percent of their “high-three” average salary.
A CSRS component under FERS is subject to the CSRS COLA
calculation. FERS survivors receive the FERS increase on
their entire annuity, even where component service is
involved, says OPM. Get Document