Federal Retirees to Receive 1.3 Percent COLA

Cost-of-living-adjustment (COLA) rates for federal annuitants in 2021 were announced earlier today. Retirees under both the Civil Service Retirement System and the Federal Employee Retirement System will see their monthly annuities adjusted by 1.3 percent starting with January 2021 payments.

By law, COLAs are based on the CPI-W, or Consumer Price Index for Urban Wage Earners and Clerical Workers, calculated by the Bureau of Labor Statistics. NTEU has worked to protect federal retiree COLAs from severe cuts and even elimination for years.

Most recently, NTEU opposed an administration proposal to eliminate COLAs for FERS retirees and reduce COLA increases by 0.5 percent for those on the CSRS. The retiree COLA is unrelated to the pay raise for current federal employees, which is set by the president unless adjusted by Congress. NTEU continues to fight for a fair pay raise for the entire federal workforce. Learn more about the COLA calculation formula.