The Cost-of-Living Adjustment (COLA) for federal retirees in 2026 has been announced based on the changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). For January 2025, the CPI-W increased by 0.68 percent, leading to a 2.5 percent COLA for Civil Service Retirement System (CSRS) annuities, military retirement annuities, and Social Security benefits. Federal Employees Retirement System (FERS) annuities will receive a 2.0 percent COLA.
The CPI-W figure for January 2025 was 311.172, marking a 0.79 percent increase from the average CPI-W for the third quarter of 2024. COLAs for federal retirement annuities, military retiree annuities, and Social Security payments are determined annually based on the CPI-W changes.
Additionally, individuals receiving insurance benefits under the Federal Employees Compensation Act (FECA) will see a 2.8 percent COLA in March 2025, calculated by comparing the CPI-W figures from December 2024 to December 2023. FECA COLAs follow a different methodology than other federal retiree COLAs.
Stay informed about the latest COLA updates and their impact on federal retiree benefits. NARFE provides resources and information for the federal community to navigate changes in civil service rules and federal benefit cuts.
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This article was summarized and republished from the original source.
Please check the original article here: https://www.narfe.org/federal-benefits-institute/cola/.