Looks like Federal Retirees are to Receive a 1.7% COLA for 2015, according to the new figures that was released this morning. This is a slight increase compared to the adjustment they received this year of 1.5%, but the same as 2013 when they received 1.7%.
The annual COLA increase is based on the percentage increase in the average CPI-W for the third quarter of the current year over the average CPI-W for the third quarter of the last year in which a COLA became effective.
If the percentage increase is less than 2 percent, then retirees under the Federal Employees Retirement System receive the full COLA (and the same amount as Civil Service Retirement System Retirees). If the change is 2 percent to 3 percent, FERS retirees receive 2 percent. And if the increase is 3 percent or higher, FERS retirees receive 1 percentage point less than the full increase.
This will be the third consecutive year in a row that retirees will receive less than 2 percent in their COLA.
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