With two months left in the counting period toward the January 2021 retiree COLA, the count stands at 1 percent, following an increase of 0.6 percentage points in July in the inflation index used to set the adjustment.

That was the second straight month of an increase of that size, overcoming the downturns of earlier in the year that had sent the COLA count into negative territory for several months.


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.

Time to Change COLA Brands for FERS & CSRS?
For years, much of the focus in Washington on federal retirement benefits has centered around two main assertions. First, that the cost of living adjustment, or COLA, provisions are very valuable. Second, that we must do something about that.

ask.FEDweek.com: COLAs – Federal Cost of Living Adjustments

Cap on TSP G Fund Yield Discussed by Federal Reserve

FERS Retirement Guide 2020