COLA Count Up a Bit

The consumer price index on which federal retirement cost-of-living adjustments are based increased 0.1 percentage points in June, bringing the amount accumulated toward the January 2006 retiree COLA to 2.7 percent. There are three months left in the counting period. CSRS retirees get the full COLA; FERS retirees, assuming they meet eligibility requirements, get a 2 percent COLA if the amount falls between 2 and 3 percent and the CPI figure minus a percentage point if the figure is 3 percent or higher. COLAs are prorated for those retired less than a full year at the time of the payout.