On Tuesday, NTEU reported that the cost-of-living-adjustment (COLA) rates for retirees will adjust by 1.3 percent starting in January 2021.
For years, NTEU has worked to protect federal retiree COLAs from severe cuts and outright elimination. Most recently, we opposed the administration proposal to eliminate COLAs for FERS retirees, with a 0.5 percent reduction 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.
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.
Learn more about the COLA calculation formula.