CSRS retirees get 3.6% COLA in January, FERS 2.6%

Federal News Radio reports that the Social Security Administration has confirmed that retirees will receive a 3.6% cost of living adjustment in January. The COLA also applies to federal pensioners:

Federal retirees under the old Civil Service Retirement System receive the full COLA amount.

However, there is a slightly different system for retirees under the Federal Employees Retirement System. If the COLA is more than 3 percent, FERS retirees will receive 1 percent less than the general increase. If the COLA is between 2 percent and 3 percent, FERS retirees receive just a 2 percent increase.

For example, with a COLA of 3.6 percent, FERS retirees can expect to receive a 2.6 percent increase.

However, most FERS retirees will not have the COLA applied to their annuity until age 62.

via Social Security announces 3.6 percent COLA – FederalNewsRadio.com.