The count toward the 2022 federal retirement COLA stands at 0.7 percent, following an increase of 0.5 percentage points in January in the inflation index used to set that adjustment. The count is now one-third complete, with the final calculation, reflecting the 12-month period through September, to be announced in October.
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.
Read more on COLAs under FERS and CSRS at ask.FEDweek.com