COLA for FERS Retirees

After the first quarter of 2020, the second quarter for the 2021 COLA adjustment period, the quarterly average has risen by 0.5%.

How the COLA is Calculated

The 2021 FERS retiree COLA is based on the third quarter (July, August, September) average CPI-W index (1982-84=100) in 2020 over the 2019 third quarter average. However, if the CPI-W quarterly average increases 3% or more, they subtract 1%.  A 5% increase in the quarterly CPI-W average results in a 4% adjustment.  If the quarterly average increases from 2% to 3%, benefits increase by 2%.  A CPI-W quarterly average increase of 2% or less will increase benefits by the change in the CPI-W quarterly average.

Past FERS COLA Adjustments