In the News

Today, Congressman Gerry Connolly (D-VA), Vice Ranking Member of the House Oversight and Government Reform Committee, introduced the Equal COLA Act. The legislation aims to bring equity to the way the cost-of-living adjustment (COLA) is determined under the Civil Service Retirement System (CSRS) and Federal Employees Retirement System (FERS).

In January, CSRS employees will receive a 2.8 percent, however, FERS employees will only receive a 2.0 percent increase. This unfair treatment in retirement benefits is due to legislation signed by President Reagan in 1986 creating FERS.  

For example,

• If a given year’s COLA is below 2 percent, FERS retirees would receive the full COLA;
• If the COLA is between 2 and 3 percent, FERS retirees would only receive 2 percent;
• And if the COLA increases by 3 percent of more, FERS retirees would receive one percent less.

“Over time, we now realize that this two-tiered system fails to protect FERS retirees who are living on a fixed income,” Connolly said. “This legislation will rectify this unfair system and ensure these dedicated public servants are protected throughout their retirement.”

Connolly’s legislation would amend U.S. Code so that COLAs for retirees under the FERS system will be calculated the same way as COLAs for retirees under CSRS going forward. The bill is supported by the National Active and Retired Federal Employees Association (NARFE), the National Federation of Federal Employees (NFFE), the American Federation of Government Employees (AFGE), the Federal Managers Association, National Association of Postal Supervisors , and the Senior Executives Association.

“NARFE thanks Congressman Connolly for leading the effort to provide FERS retirees a full COLA each year based on the actual measured change in consumer prices. This is a common sense policy that will allow FERS annuities to keep up with inflation,” said NARFE National President Ken Thomas.

Text of the legislation can be found here.