The same full calculated COLA is paid on Social Security benefits, with no prorating for those retired less than a year. Image: Andrey_Popov/Shutterstock.com
By: FEDweek StaffThrough ten months remaining in the count toward the January 2026 federal retirement COLA, the figure stands at 2.5 percent, following an increase in July of 0.1 percentage points in the inflation index used to set that COLA.
The increase for July was on the low end of most increases during this counting period. With only two months left in the count, it seems that—barring a major change in direction one way or the other—the count will finish around 3 percent.
If the count finishes between 2 and 3 percent, the applicable adjustment for FERS retirees who are eligible for COLAs (generally not until age 62, with some exceptions) will be a flat 2 percent; if it finishes at or above 3 percent, they would receive 1 percentage point less. CSRS retirees get the full amount, with no restriction by age.
Under both FERS and CSRS, increases are prorated for less than a full year at the payout. That would be worth remembering for the unknown, but likely large, number of employees who will be retiring in September at the end of their “deferred resignation” periods (in some cases, those accepting that incentive have been allowed to put off retirement through the end of the year).
The same full calculated COLA is paid on Social Security benefits, with no prorating for those retired less than a year.
Ruling on CFPB Job Cuts Could Affect Challenges to Other RIFs and Reorgs
OPM Calls Off Viewpoint Survey; Next Edition to be Revised
Several Federal Agencies Disavow Union Contracts, with More Likely to Follow
See also,
Should I be Shooting for a $1M TSP Balance? Depends…
What to Know About the New Federal Application Process
Attorney Schnitzer:
How to Challenge a Federal Reduction in Force (RIF) in 2025Attorney Schnitzer:
A Pre-RIF Checklist for Every Federal Employee, From a Federal Employment AttorneyTop 10 Provisions in the Big Beautiful Bill of Interest to Federal Employees
