Federal Manager's Daily Report

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