Current Cost of Living Adjustments (COLA)
The Cost-of-Living Adjustment (COLA) is effective December 1, 2012, and is first reflected in the annuity
payment dated January 2, 2013.
Retired Federal employees and entitled surviving family members of deceased Federal employees and retirees
have received a Cost-of-Living Adjustment (COLA) effective December 1, 2012, which will be first reflected
in the benefit payable January 2, 2013.
Under the Civil Service Retirement System (CSRS) and the Organization Retirement and Disability System
(ORDS), the Cost-of-Living Adjustment (COLA) will be 1.7 percent for those who have received benefits for
at least one year. The 1.7 percent increase was determined by computing the percentage increase in the
Consumer Price Index (CPI) for urban wage earners and clerical workers from the third quarter average of
2011 to the third quarter average of 2012, as provided by the U.S.
Department of Labor, Bureau of Labor Statistics.
Under the Federal Employees Retirement System (FERS) and FERS Special, the COLA will be 1.7 percent for
those who have received benefits for at least one year. This amount was derived from the same CPI
comparison as CSRS.
Federal Employees Retirement System (FERS) and FERS Special Cost-of-Living Adjustments are not provided
until age 62, except for disability, survivor benefits, and other special provision retirements. FERS
disability retirees get the adjustment, except when they are receiving a disability annuity based on 60
percent of their high-3 average salary. Also, under FERS, if
you have a CSRS component, the component is subject to the CSRS COLA calculation. FERS survivors receive
the FERS increase on their entire annuity, even where component service is involved.
To get the full COLA, a retiree or survivor annuity must have begun no later than December 31, 2011. If
not, the increase is prorated under both plans. Prorated accounts receive one-twelfth of the increase for
each month they received benefits. For example, if the benefit commenced November 30, 2012, the prorated
COLA would be one-twelfth of the full COLA.
Under both plans, benefits are paid on the first business day of the month after the month in which they
accrue. Benefits which accrue in December 2012 are payable on January 2, 2013.
Note: A benefit will not be increased if it would cause the annuitant to receive payments in excess of any
cap amount specified by law.
The tables below show the actual prorated percentages that apply, under both plans, according to the month
in which the annuity began.
Civil Service Retirement System (CSRS) and Organization Retirement and Disability
System (ORDS)
December 2011 |
1.7% |
January 2012 |
1.6% |
February 2012 |
1.4% |
March 2012 |
1.3% |
April 2012 |
1.1% |
May 2012 |
1.0% |
June 2012 |
0.9% |
July 2012 |
0.7% |
August 2012 |
0.6% |
September 2012 |
0.4% |
October 2012 |
0.3% |
November 2012 |
0.1% |
Federal Employees Retirement System (FERS) and FERS Special Disability System
December 2011 |
1.7% |
January 2012 |
1.6% |
February 2012 |
1.4% |
March 2012 |
1.3% |
April 2012 |
1.1% |
May 2012 |
1.0% |
June 2012 |
0.9% |
July 2012 |
0.7% |
August 2012 |
0.6% |
September 2012 |
0.4% |
October 2012 |
0.3% |
November 2012 |
0.1% |
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