Fedweek

Image: Zerbor/Shutterstock.com

Through five months of the measuring period for the January 2023 federal retirement COLA the count stands at 3.9 percent, following an increase of 0.9 percentage points in February in the inflation index used to determine that adjustment.

Cost-of-living-adjustments (COLAs) are effective on December 1 of each year and are applied to the annuity payments made the following month. COLAs for those retired less than one year are prorated according to the date on which they retired. If you retire in January, your first adjustment will be made in January of the following year and will be for 11/12ths of the COLA amount. If you retire in February it will be 10/12ths, and so forth. Future COLAs will be for the full amount.

ADVERTISEMENT

COLA Based on Consumer Price Index
The COLA is based on the change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI/W) average of the third calendar quarter of one year to the next. If the inflation count finishes negative, benefits are frozen but not reduced. Also, in that situation the starting point for the next COLA count remains the same.

Note: Social Security COLAs follow the same formula except that a full Social Security COLA is paid even to someone who has drawn benefits for less than a year.

Workplace Protocols Further Loosened, but Little Further Word on ‘Reentry’

VA Restructuring Plan Would Change Footprint, Focus

VA Facilities Proposal Also Seeks Recruitment, Retention Authorities

Rules Coming on Consideration of Prior Salaries in Pay Setting, Says OPM

USPS Moves to Loosen Some Ethics Rules for Employees

Guidance: New, Updated Guidance Issued on Workplace Safety Measures

Biden Signs Bill Funding Agencies Through Rest of Fiscal Year

Smoothing the Road for Your Retirement Application

2022 Federal Employees Handbook