The cost of living adjustment for beneficiaries under the Federal Employees Compensation Act has been finalized, with a 1.5 percent COLA to be paid with April payments.
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 is calculated on an October-September basis.
Through three months of the retiree COLA count toward January 2022, that figure stands at 0.3 percent.
Report: Phased Retirement
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