Today, the Department of Labor announced cost-of-living-adjustment (COLA) information for federal benefits in 2018. CSRS and FERS annuitants will receive a 2% monthly increase starting with January 2018 benefit payments. Social Security beneficiaries will also see their monthly benefits rise by 2% in January.
Under current law, annual adjustments to federal retiree annuities, Social Security benefits, and military pensions, are determined based on the rise in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which is calculated by the Department’s Bureau of Labor Statistics. In 2017, federal retirees, Social Security beneficiaries, and military retirees, received a 0.3% adjustment to their monthly benefits. The 2018 COLA will be the largest increase since the adjustment for 2012 benefits.
I know that while it seems that the annual COLAs do not keep pace with the increases in many goods and services that are necessary for older Americans, NTEU is committed to blocking harmful proposals advanced by the administration and some on Capitol Hill that would eliminate COLAs for FERS retirees and significantly reduce COLAs for CSRS annuitants. Further, NTEU will continue to fight other recurring proposals that seek to replace the measure used to gauge the COLA with a “chained CPI” in order to significantly lower the COLAs for all of our nation’s seniors.