Annuity benefits for federal retirees are not affected either by the partial government shutdown or by President Trump’s order freezing salary rates for current employees in 2019.
Those benefits are increasing effective with January payouts by 2.8 percent for CSRS retirees and by 2 percent for FERS retirees who are eligible for a COLA (FERS annuities are not increased for those under age 62 except for disability retirees, survivor beneficiaries and those under mandatory retirement systems).
The same COLA also applies to Social Security, military retirement, and survivor benefits.
For CSRS retirees and eligible FERS retirees who have been on the annuity rolls for less than 12 months, the initial COLA is pro-rated.
COLAs 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.
More on COLAs – Federal Cost of Living Adjustments at ask.FEDweek.com