COLA Count Drops

Through two months of the counting period for the January 2005 federal retiree cost-of-living adjustment, the count stands at a negative 0.1 percent, following a 0.3 percent drop in November in the index used to set the COLA. The drop will have no effect on the COLA coming with January 2004 payments, which will be 2.1 percent for CSRS retirees and 2 percent for FERS retirees eligible for COLAs. In the unlikely event that the count remains in negative territory for the remainder of the current counting period, there would be no reduction in retiree benefits in January 2005; there is no such thing as a negative COLA.