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Some Federal Government retirees won't get the full 2027 COLA - FedManager.com
Federal Government employees who retired under the newer FERS (Federal Employee Retirement System) program will not actually receive the much-heralded 3.6% Cost of Living Adjustment (COLA) that takes effect with their December Social Security payment. That's due to a quirk in the FERS benefit calculation which takes each retiree's Thrift Savings Plan (TSP) into account, as described in this FedManager.com article. Retirees under the older CSRS (Civil Service Retirement System) program (which was sunset in 1986) will receive all of the announced 3.6% COLA increase; FERS retirees will get 1% less because of the way the FERS program was designed. Legislation to change that anomaly has been stalled in Congress since it was introduced in early 2025. Click here to read more.
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