Retired federal employees under the Federal Employees Retirement System currently can end up receiving a lower cost-of-living adjustment than retirees under the older Civil Service Retirement System, due to the legislation that created the FERS in 1986.
Rep. Gerry Connolly, D-Va., introduced legislation Nov. 20 that would amend Title 5 of U.S. Code to ensure that COLAs for all retirees are equal.
“Over time, we now realize that this two-tiered system fails to protect FERS retirees who are living on a fixed income,” Connolly said in a news release. “This legislation will rectify this unfair system and ensure these dedicated public servants are protected throughout their retirement.”
COLAs are provided to federal employees and retirees that live in areas with higher costs-of-living than the national average, in order to make up the difference between an employee that lives in a relatively cost-effective part of the country and another employee that works on the same pay scale but has to live in an expensive part of the country to do their work.
The COLA for retirees under the existing FERS system is capped at 2 percent.
“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 National Active and Retired Federal Employees Association National President Ken Thomas in a news release.
“Pursuant to federal law and the annual change in consumer prices measured by the Bureau of Labor Statistics, the COLA to Civil Service Retirement System annuities and Social Security benefits will be 2.8 percent in 2019. Unfortunately, it will be only 2 percent for FERS annuities.”
Jessie Bur covers federal IT and management.
