Q & A

I always thought retiring Jan. 3 was a good idea, but let’s assume I plan to retire in 2014. If there is a retiree cost-of-living adjustment in 2015, and I retire Dec. 3, 2014, will my annuity increase in January by the 2015 COLA percentage? (If not, how far back into 2014 would I need to retire to get the next COLA?) Is it 1/12 of COLA per month prior to the January increase?

Answer: To receive the full January 2015 COLA, you’d have to retire no later than Dec. 3, 2013 (that’s today). If you retired Jan. 3, 2014, you’d receive 11/12th of that 2015 COLA.

Source: Reg Jones, FederalTimes.com – December 3, 2013

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