The 2020 cost of living adjustments for beneficiaries under the Federal Employees Compensation Act has been finalized, with a 2.3 percent COLA to be paid in April.
The COLA for FECA beneficiaries uses the same inflation index as the COLA for federal retirement benefits, except that the former program calculates its adjustment on a calendar year basis while the latter calculates its on an October-September basis.
Through three months of the count, the 2021 retiree COLA stands at 0.1 percent.
More background at ask.FEDweek.com on:
Workers Compensation Benefits for Federal Employees
The Federal Employees Compensation Act (FECA) provides workers compensation benefits to federal employees who sustain job-related injuries or illnesses. The law also guarantees employees certain job rights upon recovery. Upon their return to work, employees will be treated as though they had never left for purposes of rights and benefits based upon length of service.
COLAs – Federal Cost of Living Adjustments
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.