COLA, Largest Since 2012 Shortchanges FERS Retirees

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COLA, Largest Since 2012 for CSRS Retirees and Social Security Recipients, Shortchanges FERS Retirees

'...Unfortunately, hundreds of thousands of FERS retirees will be wondering why they are only receiving a 2 percent COLA when the relevant measure of consumer prices increased by 2.8 percent. That's due to the bargain struck in Congress in the 1980s when FERS was created, which limits COLAs to 2 percent when consumer prices increase between 2 and 3 percent. But that was the wrong policy then, as it is now. It prevents FERS annuities from keeping up with inflation, which is the whole point of a COLA. It is past time for Congress to ensure FERS retirees receive a full COLA each year...'

Reference: insurancenewsnet.com
Tags: CSRS vs FERS, FERS,

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