[Excerpt] Cost-of-living adjustments (COLAs) for the Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS) are based on the rate of inflation as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). COLAs for both CSRS and FERS are determined by the average monthly CPI-W during the third quarter (July to September) of the current calendar year and the third quarter of the base year, which is the last previous year in which a COLA was applied. The “effective date” for COLAs is December, but they first appear in the benefit checks issued during the following January.
All CSRS retirees and survivors receive COLAs. Under FERS, however, non-disabled retirees under the age of 62 do not receive COLAs. Survivors and disabled retirees are eligible for COLAs under FERS regardless of age. CSRS pays a COLA that is equal to the percentage change in the CPI-W during the measurement period, but COLAs under FERS are limited if the rate of inflation is greater than 2.0%. If the rate of inflation during the measurement period is between 2.0% and 3.0%, the COLA under FERS is 2.0%. If inflation is greater than 3.0%, then the COLA for FERS benefits is equal to the CPI-W minus one percentage point.
Congress passed the first law requiring automatic COLAs for federal civil service retirement benefits in 1962, and it has adjusted either the formula by which they are calculated or the date on which they take effect more than a dozen times since then.
If consumer prices as measured by the CPI-W do not increase from the third quarter of the base year to the third quarter of the current calendar year, there is no COLA for annuities paid under CSRS or FERS. From the third quarter of 2014 to the third quarter of 2015, the CPI-W fell by 0.4%. Therefore, there will be no COLA under either CSRS or FERS in January 2016

Isaacs, Katelin P

English

This report discusses the Cost-of-living adjustments (COLAs) for the Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS) and government retirees, as well as related legislation

Isaacs, Katelin P.

UNT Digital Library

  Cost-of-Living Adjustments for Federal Civil Service Annuities Katelin P. Isaacs Analyst in Income Security October 15, 2015 Congressional Research Service 7-5700 www.crs.gov 94-834 Cost-of-Living Adjustments for Federal Civil Service Annuities  Congressional Research Service Summary Cost-of-living adjustments (COLAs) for the Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS) are based on the rate of inflation as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). COLAs for both CSRS and FERS are determined by the average monthly CPI-W during the third quarter (July to September) of the current calendar year and the third quarter of the base year, which is the last previous year in which a COLA was applied. The “effective date” for COLAs is December, but they first appear in the benefit checks issued during the following January. All CSRS retirees and survivors receive COLAs. Under FERS, however, non-disabled retirees under the age of 62 do not receive COLAs. Survivors and disabled retirees are eligible for COLAs under FERS regardless of age. CSRS pays a COLA that is equal to the percentage change in the CPI-W during the measurement period, but COLAs under FERS are limited if the rate of inflation is greater than 2.0%. If the rate of inflation during the measurement period is between 2.0% and 3.0%, the COLA under FERS is 2.0%. If inflation is greater than 3.0%, then the COLA for FERS benefits is equal to the CPI-W minus one percentage point. Congress passed the first law requiring automatic COLAs for federal civil service retirement benefits in 1962, and it has adjusted either the formula by which they are calculated or the date on which they take effect more than a dozen times since then. If consumer prices as measured by the CPI-W do not increase from the third quarter of the base year to the third quarter of the current calendar year, there is no COLA for annuities paid under CSRS or FERS. From the third quarter of 2014 to the third quarter of 2015, the CPI-W fell by 0.4%. Therefore, there will be no COLA under either CSRS or FERS in January 2016. Cost-of-Living Adjustments for Federal Civil Service Annuities  Congressional Research Service Contents COLA Formulas and Amounts ........................................................................................................ 1 History of Legislation Affecting COLAs for Civil Service Annuities ............................................ 1  Tables Table 1. COLAs in Civil Service Retirement Benefits .................................................................... 3  Contacts Author Contact Information ............................................................................................................ 4  Cost-of-Living Adjustments for Federal Civil Service Annuities  Congressional Research Service 1 COLA Formulas and Amounts Only federal employees hired before 1984 participate in the Civil Service Retirement System (CSRS). The CSRS is closed to new entrants and will expire with the death of the last CSRS annuitant sometime around the year 2075. Civilian federal employees who were hired in 1984 or later participate in the Federal Employees Retirement System (FERS), as do employees who voluntarily switched from CSRS to FERS during “open seasons” that were held in 1987 and 1998. The FERS program began operating on January 1, 1987. Cost-of-living adjustments (COLAs) for CSRS annuities are based on the average monthly percentage change in the CPI-W in the third quarter (July to September) of the current calendar year compared with the third quarter of the base year, which is the year in which the last COLA was applied.1 Adjustments are effective on the first day of the month preceding the month in which they are first paid. For example, the 2015 CSRS COLA of 1.7% was effective December 1, 2014, and first applied to benefits paid in January 2015. It was equal to the average monthly percentage change in the CPI-W between the third quarter of calendar year 2013 and the third quarter of 2014. Because there was no increase in the CPI-W between the third quarter of 2014 and the third quarter of 2015, there will be no CSRS COLA paid out beginning in January 2016. COLAs for benefits paid under FERS also are based on the percentage change in the CPI-W from third quarter to third quarter, but payment of COLAs under FERS is limited according to the eligibility category of the beneficiary and the rate of inflation. COLAs are not paid to non-disabled FERS retirees as long as they are under the age of 62. COLAs are paid to survivors and disabled FERS retirees of any age after the first year of disability. All COLAs paid under FERS are limited if the rate of inflation exceeds 2.0%, according to the following formula: Increase in CPI-W Increase (COLA) in FERS Benefits Under 2.0% Same as CPI-W increase 2.0% to 3.0% 2.0% More than 3.0% Increase in CPI-W minus 1 percentage point From the third quarter of 2014 to the third quarter of 2015, the CPI-W decreased by 0.4%. Therefore, there will be no CSRS or FERS COLA paid out in January 2016. History of Legislation Affecting COLAs for Civil Service Annuities P.L. 87-793 (enacted in 1962) was the first law that provided for automatic adjustments in civil service retirement and disability benefits whenever the CPI in the current year exceeded the CPI in the base year (the year in which the last adjustment occurred) by 3.0% or more. In 1965, this was changed to require an adjustment in benefits whenever the CPI for a given month was at least                                                  1 Between 1962 (when Congress passed the first law enacting automatic COLAs for federal civil service retirement benefits) and 2009, the base year—the year in which the last adjustment occurred—was also the previous year. Because the CPI-W decreased from the third quarter of 2008 to the third quarter of 2010, however, the base year for determining the COLA that was effective in December 2011 (and paid out in 2012) remained 2008. The base year for determining the COLA effective in December 2015 (that would be paid out in 2016) is 2014. Because there was no increase in the CPI-W between the third quarter of 2014 and the third quarter of 2015, however, there will be no CSRS or FERS COLA paid out in 2016. See 5 U.S.C. §8340 and 5 U.S.C. §8462. Cost-of-Living Adjustments for Federal Civil Service Annuities  Congressional Research Service 2 3.0% higher than in the month when the last adjustment was made, and remained at that level or higher for three consecutive months. P.L. 91-93 (enacted in 1969) added one percentage point to COLAs in addition to the percentage change in the CPI to offset the erosion of benefits that had occurred as a result of the time lag in the adjustment formula. (P.L. 91-179 did the same for COLAs paid to military retirees.) P.L. 94-440 (enacted in October 1976) repealed the one percentage point addition to COLAs. In addition, this law provided for automatic semi-annual adjustments in benefits based on the change in the CPI from June to December (effective the following March 1) and December to June (effective the following September 1). P.L. 97-35 (Omnibus Budget Reconciliation Act of 1981) replaced semi-annual COLAs with annual COLAs based on the December-to-December change in the CPI, payable in March of the following year. P.L. 97-253 (Omnibus Budget Reconciliation Act of 1982) delayed the implementation of COLAs by one month in FY1983, FY1984, and FY1985. The FY1983 COLA was effective April 1 rather than March 1. The FY1984 COLA was scheduled for May 1 and the FY1985 COLA was scheduled for June 1. This law also mandated that non-disabled retirees under the age of 62 would receive 50% of the projected CPI plus the full difference in the actual CPI over these projections. The law specified that the projected CPI was 6.6% for 1983, 7.2% for 1984, and 6.6% for 1985. This provision was repealed by the supplemental appropriations law that was passed in August 1984. COLAs for January 1985 and thereafter were to be the full amount for all retirees. P.L. 97-253 limited COLAs in certain cases. Under the restriction, an annuity could not be increased by a COLA to an amount that exceeded the greater of the maximum pay for a GS-15 federal employee or the final pay of the employee (or high-3 average pay, if greater), increased by the average annual percentage change (compounded) in rates of pay of the General Schedule for the period beginning on the retiree’s annuity starting date and ending on the effective date of the adjustment. P.L. 98-270 (Omnibus Budget Reconciliation Act of 1983, enacted April 1984) delayed the COLA scheduled for May 1984 until December (payable in January 1985). Thereafter, all COLAs were to be effective in December and payable in January and were to be based on the change in the average monthly CPI-W from third-quarter to third-quarter. This formula and schedule are the same as those used to calculate COLAs in the Social Security program, as required by P.L. 98-21 (Social Security Amendments of 1983). P.L. 98-369 (Deficit Reduction Act of 1984) specified that civilian and military retirement COLAs are to be paid in checks issued on the first business day of the month following the month in which they are effective. (COLAs that are effective in December are to be paid in checks issued in January.) P.L. 99-177 (Balanced Budget and Emergency Deficit Control Act of 1981 [Gramm-Rudman-Hollings]). This law suspended all civil service retirement COLAs for FY1986 and for all subsequent years in which the specified deficit reduction targets for the year would not otherwise be met. P.L. 99-509 (Omnibus Budget Reconciliation Act of 1986). This law reinstated COLAs for programs in which they were subject to suspension under P.L. 99-177 for FY1987-FY1991. Cost-of-Living Adjustments for Federal Civil Service Annuities  Congressional Research Service 3 P.L. 100-119 (Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987). This law permanently exempted the programs subject to suspension of COLAs under P.L. 99-177 from the suspensions required by that law. P.L. 103-66 (Omnibus Budget Reconciliation Act of 1993). This law postponed the effective date of COLAs from December to March for FY1994-FY1996. The CPI measurement period was not changed. Table 1. COLAs in Civil Service Retirement Benefits Effective Datea CSRS Benefit Increase FERS Benefit Increase CPI Increase During COLA Measurement Period December 1965 6.1% — 4.6% January 1967 3.9 — 3.9 May 1968 3.9 — 3.9 March 1969 3.9 — 3.9 November 1969 5.0 — 4.0 August 1970 5.6 — 4.6 June 1971 4.5 — 3.5 July 1972 4.8 — 3.8 July 1973 6.1 — 5.1 January 1974 5.5 — 4.5 July 1974 6.3 — 5.3 January 1975 7.3 — 6.3 August 1975 5.1 — 4.1 March 1976 5.4 — 4.4 March 1977 4.8 — 4.8 September 1977 4.3 — 4.3 March 1978 2.4 — 2.4 September 1978 4.9 — 4.9 March 1979 3.9 — 3.9 September 1979 6.9 — 6.9 March 1980 6.0 — 6.0 September 1980 7.7 — 7.7 March 1981 4.4 — 4.4 March 1982 8.7 — 8.7 April 1983 3.9 — 3.9 December 1984 3.5 — 3.5 December 1985 0.0 — 3.1 December 1986 1.3 — 1.3 December 1987 4.2 — 4.2 December 1988 4.0 3.0 4.0 December 1989 4.7 3.7 4.7 December 1990 5.4 4.4 5.4 December 1991 3.7 2.7 3.7 December 1992 3.0 2.0 3.0 March 1994 2.6 2.0 2.6 March 1995 2.8 2.0 2.8 March 1996 2.6 2.0 2.6 December 1996 2.9 2.0 2.9 Cost-of-Living Adjustments for Federal Civil Service Annuities  Congressional Research Service 4 Effective Datea CSRS Benefit Increase FERS Benefit Increase CPI Increase During COLA Measurement Period December 1997 2.1 2.0 2.1 December 1998 1.3 1.3 1.3 December 1999 2.4 2.0 2.4 December 2000 3.5 2.5 3.5 December 2001 2.6 2.0 2.6 December 2002 1.4 1.4 1.4 December 2003 2.1 2.0 2.1 December 2004 2.7 2.0 2.7 December 2005 4.1 3.1 4.1 December 2006 3.3 2.3 3.3 December 2007 2.3 2.0 2.3 December 2008 5.8 4.8 5.8 December 2009 0.0 0.0 -2.1 December 2010 0.0 0.0 -0.6   December 2011 3.6 2.6 3.6 December 2012 1.7 1.7 1.7 December 2013 1.5 1.5 1.5 December 2014 1.7 1.7 1.7 December 2015 0.0 0.0 -0.4 Source: The Congressional Research Service. Note: Includes pensions for Members of Congress. a. Benefit increases are actually paid in checks issued the first of the following month.  Author Contact Information  Katelin P. Isaacs Analyst in Income Security kisaacs@crs.loc.gov, 7-7355      

Cost-of-Living Adjustments for Federal Civil Service Annuities

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10-15-2015 
Cost-of-Living Adjustments for Federal Civil Service Annuities 
Katelin P. Isaacs 
Congressional Research Service 
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Cost-of-Living Adjustments for Federal Civil Service Annuities 
Abstract 
[Excerpt] Cost-of-living adjustments (COLAs) for the Civil Service Retirement System (CSRS) and the 
Federal Employees Retirement System (FERS) are based on the rate of inflation as measured by the 
Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). COLAs for both CSRS and 
FERS are determined by the average monthly CPI-W during the third quarter (July to September) of the 
current calendar year and the third quarter of the base year, which is the last previous year in which a 
COLA was applied. The “effective date” for COLAs is December, but they first appear in the benefit checks 
issued during the following January. 
All CSRS retirees and survivors receive COLAs. Under FERS, however, non-disabled retirees under the age 
of 62 do not receive COLAs. Survivors and disabled retirees are eligible for COLAs under FERS regardless 
of age. CSRS pays a COLA that is equal to the percentage change in the CPI-W during the measurement 
period, but COLAs under FERS are limited if the rate of inflation is greater than 2.0%. If the rate of inflation 
during the measurement period is between 2.0% and 3.0%, the COLA under FERS is 2.0%. If inflation is 
greater than 3.0%, then the COLA for FERS benefits is equal to the CPI-W minus one percentage point. 
Congress passed the first law requiring automatic COLAs for federal civil service retirement benefits in 
1962, and it has adjusted either the formula by which they are calculated or the date on which they take 
effect more than a dozen times since then. 
If consumer prices as measured by the CPI-W do not increase from the third quarter of the base year to 
the third quarter of the current calendar year, there is no COLA for annuities paid under CSRS or FERS. 
From the third quarter of 2014 to the third quarter of 2015, the CPI-W fell by 0.4%. Therefore, there will be 
no COLA under either CSRS or FERS in January 2016. 
Keywords 
Cost-of-living adjustments, COLAs, Civil Service Retirement System, CSRS, Federal Employees Retirement 
System, FERS 
Comments 
Suggested Citation 
Isaacs, K. P. (2015). Cost-of-living adjustments for federal civil service annuities (CRS Report 94-834). 
Washington, DC: Congressional Research Service. 
This article is available at DigitalCommons@ILR: https://digitalcommons.ilr.cornell.edu/key_workplace/1466 
  
Cost-of-Living Adjustments for Federal Civil 
Service Annuities 
Katelin P. Isaacs 
Analyst in Income Security 
October 15, 2015 
Congressional Research Service 
7-5700 
www.crs.gov 
94-834 
Cost-of-Living Adjustments for Federal Civil Service Annuities 
 
Congressional Research Service 
Summary 
Cost-of-living adjustments (COLAs) for the Civil Service Retirement System (CSRS) and the 
Federal Employees Retirement System (FERS) are based on the rate of inflation as measured by 
the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). COLAs for 
both CSRS and FERS are determined by the average monthly CPI-W during the third quarter 
(July to September) of the current calendar year and the third quarter of the base year, which is 
the last previous year in which a COLA was applied. The “effective date” for COLAs is 
December, but they first appear in the benefit checks issued during the following January. 
All CSRS retirees and survivors receive COLAs. Under FERS, however, non-disabled retirees 
under the age of 62 do not receive COLAs. Survivors and disabled retirees are eligible for 
COLAs under FERS regardless of age. CSRS pays a COLA that is equal to the percentage change 
in the CPI-W during the measurement period, but COLAs under FERS are limited if the rate of 
inflation is greater than 2.0%. If the rate of inflation during the measurement period is between 
2.0% and 3.0%, the COLA under FERS is 2.0%. If inflation is greater than 3.0%, then the COLA 
for FERS benefits is equal to the CPI-W minus one percentage point. 
Congress passed the first law requiring automatic COLAs for federal civil service retirement 
benefits in 1962, and it has adjusted either the formula by which they are calculated or the date on 
which they take effect more than a dozen times since then. 
If consumer prices as measured by the CPI-W do not increase from the third quarter of the base 
year to the third quarter of the current calendar year, there is no COLA for annuities paid under 
CSRS or FERS. From the third quarter of 2014 to the third quarter of 2015, the CPI-W fell by 
0.4%. Therefore, there will be no COLA under either CSRS or FERS in January 2016. 
Cost-of-Living Adjustments for Federal Civil Service Annuities 
 
Congressional Research Service 
Contents 
COLA Formulas and Amounts ........................................................................................................ 1 
History of Legislation Affecting COLAs for Civil Service Annuities ............................................ 1 
 
Tables 
Table 1. COLAs in Civil Service Retirement Benefits .................................................................... 3 
 
Contacts 
Author Contact Information ............................................................................................................ 4 
 
Cost-of-Living Adjustments for Federal Civil Service Annuities 
 
Congressional Research Service 1 
COLA Formulas and Amounts 
Only federal employees hired before 1984 participate in the Civil Service Retirement System 
(CSRS). The CSRS is closed to new entrants and will expire with the death of the last CSRS 
annuitant sometime around the year 2075. Civilian federal employees who were hired in 1984 or 
later participate in the Federal Employees Retirement System (FERS), as do employees who 
voluntarily switched from CSRS to FERS during “open seasons” that were held in 1987 and 
1998. The FERS program began operating on January 1, 1987. 
Cost-of-living adjustments (COLAs) for CSRS annuities are based on the average monthly 
percentage change in the CPI-W in the third quarter (July to September) of the current calendar 
year compared with the third quarter of the base year, which is the year in which the last COLA 
was applied.1 Adjustments are effective on the first day of the month preceding the month in 
which they are first paid. For example, the 2015 CSRS COLA of 1.7% was effective December 1, 
2014, and first applied to benefits paid in January 2015. It was equal to the average monthly 
percentage change in the CPI-W between the third quarter of calendar year 2013 and the third 
quarter of 2014. Because there was no increase in the CPI-W between the third quarter of 2014 
and the third quarter of 2015, there will be no CSRS COLA paid out beginning in January 2016. 
COLAs for benefits paid under FERS also are based on the percentage change in the CPI-W from 
third quarter to third quarter, but payment of COLAs under FERS is limited according to the 
eligibility category of the beneficiary and the rate of inflation. COLAs are not paid to non-
disabled FERS retirees as long as they are under the age of 62. COLAs are paid to survivors and 
disabled FERS retirees of any age after the first year of disability. All COLAs paid under FERS 
are limited if the rate of inflation exceeds 2.0%, according to the following formula: 
Increase in CPI-W Increase (COLA) in FERS Benefits 
Under 2.0% Same as CPI-W increase 
2.0% to 3.0% 2.0% 
More than 3.0% Increase in CPI-W minus 1 percentage point 
From the third quarter of 2014 to the third quarter of 2015, the CPI-W decreased by 0.4%. 
Therefore, there will be no CSRS or FERS COLA paid out in January 2016. 
History of Legislation Affecting COLAs for Civil 
Service Annuities 
P.L. 87-793 (enacted in 1962) was the first law that provided for automatic adjustments in civil 
service retirement and disability benefits whenever the CPI in the current year exceeded the CPI 
in the base year (the year in which the last adjustment occurred) by 3.0% or more. In 1965, this 
was changed to require an adjustment in benefits whenever the CPI for a given month was at least 
                                                 
1 Between 1962 (when Congress passed the first law enacting automatic COLAs for federal civil service retirement 
benefits) and 2009, the base year—the year in which the last adjustment occurred—was also the previous year. Because 
the CPI-W decreased from the third quarter of 2008 to the third quarter of 2010, however, the base year for determining 
the COLA that was effective in December 2011 (and paid out in 2012) remained 2008. The base year for determining 
the COLA effective in December 2015 (that would be paid out in 2016) is 2014. Because there was no increase in the 
CPI-W between the third quarter of 2014 and the third quarter of 2015, however, there will be no CSRS or FERS 
COLA paid out in 2016. See 5 U.S.C. §8340 and 5 U.S.C. §8462. 
Cost-of-Living Adjustments for Federal Civil Service Annuities 
 
Congressional Research Service 2 
3.0% higher than in the month when the last adjustment was made, and remained at that level or 
higher for three consecutive months. 
P.L. 91-93 (enacted in 1969) added one percentage point to COLAs in addition to the percentage 
change in the CPI to offset the erosion of benefits that had occurred as a result of the time lag in 
the adjustment formula. (P.L. 91-179 did the same for COLAs paid to military retirees.) 
P.L. 94-440 (enacted in October 1976) repealed the one percentage point addition to COLAs. In 
addition, this law provided for automatic semi-annual adjustments in benefits based on the change 
in the CPI from June to December (effective the following March 1) and December to June 
(effective the following September 1). 
P.L. 97-35 (Omnibus Budget Reconciliation Act of 1981) replaced semi-annual COLAs with 
annual COLAs based on the December-to-December change in the CPI, payable in March of the 
following year. 
P.L. 97-253 (Omnibus Budget Reconciliation Act of 1982) delayed the implementation of COLAs 
by one month in FY1983, FY1984, and FY1985. The FY1983 COLA was effective April 1 rather 
than March 1. The FY1984 COLA was scheduled for May 1 and the FY1985 COLA was 
scheduled for June 1. This law also mandated that non-disabled retirees under the age of 62 
would receive 50% of the projected CPI plus the full difference in the actual CPI over these 
projections. The law specified that the projected CPI was 6.6% for 1983, 7.2% for 1984, and 
6.6% for 1985. This provision was repealed by the supplemental appropriations law that was 
passed in August 1984. COLAs for January 1985 and thereafter were to be the full amount for all 
retirees. 
P.L. 97-253 limited COLAs in certain cases. Under the restriction, an annuity could not be 
increased by a COLA to an amount that exceeded the greater of the maximum pay for a GS-15 
federal employee or the final pay of the employee (or high-3 average pay, if greater), increased by 
the average annual percentage change (compounded) in rates of pay of the General Schedule for 
the period beginning on the retiree’s annuity starting date and ending on the effective date of the 
adjustment. 
P.L. 98-270 (Omnibus Budget Reconciliation Act of 1983, enacted April 1984) delayed the COLA 
scheduled for May 1984 until December (payable in January 1985). Thereafter, all COLAs were 
to be effective in December and payable in January and were to be based on the change in the 
average monthly CPI-W from third-quarter to third-quarter. This formula and schedule are the 
same as those used to calculate COLAs in the Social Security program, as required by P.L. 98-21 
(Social Security Amendments of 1983). 
P.L. 98-369 (Deficit Reduction Act of 1984) specified that civilian and military retirement 
COLAs are to be paid in checks issued on the first business day of the month following the month 
in which they are effective. (COLAs that are effective in December are to be paid in checks 
issued in January.) 
P.L. 99-177 (Balanced Budget and Emergency Deficit Control Act of 1981 [Gramm-Rudman-
Hollings]). This law suspended all civil service retirement COLAs for FY1986 and for all 
subsequent years in which the specified deficit reduction targets for the year would not otherwise 
be met. 
P.L. 99-509 (Omnibus Budget Reconciliation Act of 1986). This law reinstated COLAs for 
programs in which they were subject to suspension under P.L. 99-177 for FY1987-FY1991. 
Cost-of-Living Adjustments for Federal Civil Service Annuities 
 
Congressional Research Service 3 
P.L. 100-119 (Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987). This 
law permanently exempted the programs subject to suspension of COLAs under P.L. 99-177 from 
the suspensions required by that law. 
P.L. 103-66 (Omnibus Budget Reconciliation Act of 1993). This law postponed the effective date 
of COLAs from December to March for FY1994-FY1996. The CPI measurement period was not 
changed. 
Table 1. COLAs in Civil Service Retirement Benefits 
Effective Datea 
CSRS Benefit 
Increase 
FERS Benefit 
Increase 
CPI Increase During COLA 
Measurement Period 
December 1965 6.1% — 4.6% 
January 1967 3.9 — 3.9 
May 1968 3.9 — 3.9 
March 1969 3.9 — 3.9 
November 1969 5.0 — 4.0 
August 1970 5.6 — 4.6 
June 1971 4.5 — 3.5 
July 1972 4.8 — 3.8 
July 1973 6.1 — 5.1 
January 1974 5.5 — 4.5 
July 1974 6.3 — 5.3 
January 1975 7.3 — 6.3 
August 1975 5.1 — 4.1 
March 1976 5.4 — 4.4 
March 1977 4.8 — 4.8 
September 1977 4.3 — 4.3 
March 1978 2.4 — 2.4 
September 1978 4.9 — 4.9 
March 1979 3.9 — 3.9 
September 1979 6.9 — 6.9 
March 1980 6.0 — 6.0 
September 1980 7.7 — 7.7 
March 1981 4.4 — 4.4 
March 1982 8.7 — 8.7 
April 1983 3.9 — 3.9 
December 1984 3.5 — 3.5 
December 1985 0.0 — 3.1 
December 1986 1.3 — 1.3 
December 1987 4.2 — 4.2 
December 1988 4.0 3.0 4.0 
December 1989 4.7 3.7 4.7 
December 1990 5.4 4.4 5.4 
December 1991 3.7 2.7 3.7 
December 1992 3.0 2.0 3.0 
March 1994 2.6 2.0 2.6 
March 1995 2.8 2.0 2.8 
March 1996 2.6 2.0 2.6 
December 1996 2.9 2.0 2.9 
Cost-of-Living Adjustments for Federal Civil Service Annuities 
 
Congressional Research Service 4 
Effective Datea 
CSRS Benefit 
Increase 
FERS Benefit 
Increase 
CPI Increase During COLA 
Measurement Period 
December 1997 2.1 2.0 2.1 
December 1998 1.3 1.3 1.3 
December 1999 2.4 2.0 2.4 
December 2000 3.5 2.5 3.5 
December 2001 2.6 2.0 2.6 
December 2002 1.4 1.4 1.4 
December 2003 2.1 2.0 2.1 
December 2004 2.7 2.0 2.7 
December 2005 4.1 3.1 4.1 
December 2006 3.3 2.3 3.3 
December 2007 2.3 2.0 2.3 
December 2008 5.8 4.8 5.8 
December 2009 0.0 0.0 -2.1 
December 2010 0.0 0.0 -0.6 
 
 
December 2011 3.6 2.6 3.6 
December 2012 1.7 1.7 1.7 
December 2013 1.5 1.5 1.5 
December 2014 1.7 1.7 1.7 
December 2015 0.0 0.0 -0.4 
Source: The Congressional Research Service. 
Note: Includes pensions for Members of Congress. 
a. Benefit increases are actually paid in checks issued the first of the following month. 
 
Author Contact Information 
 
Katelin P. Isaacs 
Analyst in Income Security 
kisaacs@crs.loc.gov, 7-7355 
  
 
 
 


This report is a Congressional Research Service (CRS) report regarding the cost-of-living adjustments for federal civil service annuities

CRS Report for CongressPrepared for Members and Committees of Congress          Cost-of-Living Adjustments for Federal Civil Service Annuities Katelin P. Isaacs Analyst in Income Security November 5, 2014 Congressional Research Service 7-5700 www.crs.gov 94-834 .c11173008Cost-of-Living Adjustments for Federal Civil Service Annuities  Congressional Research Service Summary Cost-of-living adjustments (COLAs) for the Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS) are based on the rate of inflation as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). COLAs for both CSRS and FERS are determined by the average monthly CPI-W during the third quarter (July to September) of the current calendar year and the third quarter of the base year, which is the last previous year in which a COLA was applied. The “effective date” for COLAs is December, but they first appear in the benefit checks issued during the following January. All CSRS retirees and survivors receive COLAs. Under FERS, however, non-disabled retirees under the age of 62 do not receive COLAs. Survivors and disabled retirees are eligible for COLAs under FERS regardless of age. CSRS pays a COLA that is equal to the percentage change in the CPI-W during the measurement period, but COLAs under FERS are limited if the rate of inflation is greater than 2.0%. If the rate of inflation during the measurement period is between 2.0% and 3.0%, the COLA under FERS is 2.0%. If inflation is greater than 3.0%, then the COLA for FERS benefits is equal to the CPI-W minus one percentage point. Congress passed the first law requiring automatic COLAs for federal civil service retirement benefits in 1962, and it has adjusted either the formula by which they are calculated or the date on which they take effect more than a dozen times since then. From the third quarter of 2013 to the third quarter of 2014, the CPI-W increased by 1.7%. Therefore, the CSRS COLA beginning in January 2015 is 1.7%. The January 2015 COLA for FERS is also 1.7%.   .c11173008Cost-of-Living Adjustments for Federal Civil Service Annuities  Congressional Research Service Contents COLA Formulas and Amounts ........................................................................................................ 1 History of Legislation Affecting COLAs for Civil Service Annuities ............................................. 1  Tables Table 1. COLAs in Civil Service Retirement Benefits .................................................................... 3  Contacts Author Contact Information............................................................................................................. 4  .c11173008Cost-of-Living Adjustments for Federal Civil Service Annuities  Congressional Research Service 1 COLA Formulas and Amounts Only federal employees hired before 1984 participate in the Civil Service Retirement System (CSRS). The CSRS is closed to new entrants and will expire with the death of the last CSRS annuitant sometime around the year 2075. Civilian federal employees who were hired in 1984 or later participate in the Federal Employees Retirement System (FERS), as do employees who voluntarily switched from CSRS to FERS during “open seasons” that were held in 1987 and 1998. The FERS program began operating on January 1, 1987. Cost-of-living adjustments (COLAs) for CSRS annuities are based on the average monthly percentage change in the CPI-W in the third quarter (July to September) of the current calendar year compared with the third quarter of the base year, which is the year in which the last COLA was applied.1 Adjustments are effective on the first day of the month preceding the month in which they are first paid. For example, the 2015 CSRS COLA of 1.7% is effective December 1, 2014, and first applies to benefits paid in January 2015. It is equal to the average monthly percentage change in the CPI-W between the third quarter of calendar year 2013 and the third quarter of 2014. COLAs for benefits paid under FERS also are based on the percentage change in the CPI-W from third quarter to third quarter, but payment of COLAs under FERS is limited according to the eligibility category of the beneficiary and the rate of inflation. COLAs are not paid to non-disabled FERS retirees as long as they are under the age of 62. COLAs are paid to survivors and disabled FERS retirees of any age after the first year of disability. All COLAs paid under FERS are limited if the rate of inflation exceeds 2.0%, according to the following formula: Increase in CPI-W Increase (COLA) in FERS Benefits Under 2.0% Same as CPI-W increase 2.0% to 3.0% 2.0% More than 3.0% Increase in CPI-W minus 1 percentage point From the third quarter of 2013 to the third quarter of 2014, the CPI-W increased by 1.7%. Therefore, the COLA first paid out in January 2015 for both CSRS and FERS is 1.7%. History of Legislation Affecting COLAs for Civil Service Annuities P.L. 87-793 (enacted in 1962) was the first law that provided for automatic adjustments in civil service retirement and disability benefits whenever the CPI in the current year exceeded the CPI in the base year (the year in which the last adjustment occurred) by 3.0% or more. In 1965, this was changed to require an adjustment in benefits whenever the CPI for a given month was at least                                                  1 Between 1962 (when Congress passed the first law enacting automatic COLAs for federal civil service retirement benefits) and 2009, the base year—the year in which the last adjustment occurred—was also the previous year. Because the CPI-W decreased from the third quarter of 2008 to the third quarter of 2010, however, the base year for determining the COLA that was effective in December 2011 (and paid out in 2012) remained 2008. The base year for determining the COLA effective in December 2014 (and paid out in 2015) is 2013. See 5 U.S.C. §8340 and 5 U.S.C. §8462. .c11173008Cost-of-Living Adjustments for Federal Civil Service Annuities  Congressional Research Service 2 3.0% higher than in the month when the last adjustment was made, and remained at that level or higher for three consecutive months. P.L. 91-93 (enacted in 1969) added one percentage point to COLAs in addition to the percentage change in the CPI to offset the erosion of benefits that had occurred as a result of the time lag in the adjustment formula. (P.L. 91-179 did the same for COLAs paid to military retirees.) P.L. 94-440 (enacted in October 1976) repealed the one percentage point addition to COLAs. In addition, this law provided for automatic semi-annual adjustments in benefits based on the change in the CPI from June to December (effective the following March 1) and December to June (effective the following September 1). P.L. 97-35 (Omnibus Budget Reconciliation Act of 1981) replaced semi-annual COLAs with annual COLAs based on the December-to-December change in the CPI, payable in March of the following year. P.L. 97-253 (Omnibus Budget Reconciliation Act of 1982) delayed the implementation of COLAs by one month in FY1983, FY1984, and FY1985. The FY1983 COLA was effective April 1 rather than March 1. The FY1984 COLA was scheduled for May 1 and the FY1985 COLA was scheduled for June 1. This law also mandated that non-disabled retirees under the age of 62 would receive 50% of the projected CPI plus the full difference in the actual CPI over these projections. The law specified that the projected CPI was 6.6% for 1983, 7.2% for 1984, and 6.6% for 1985. This provision was repealed by the supplemental appropriations law that was passed in August 1984. COLAs for January 1985 and thereafter were to be the full amount for all retirees. P.L. 97-253 limited COLAs in certain cases. Under the restriction, an annuity could not be increased by a COLA to an amount that exceeded the greater of the maximum pay for a GS-15 federal employee or the final pay of the employee (or high-3 average pay, if greater), increased by the average annual percentage change (compounded) in rates of pay of the General Schedule for the period beginning on the retiree’s annuity starting date and ending on the effective date of the adjustment. P.L. 98-270 (Omnibus Budget Reconciliation Act of 1983, enacted April 1984) delayed the COLA scheduled for May 1984 until December (payable in January 1985). Thereafter, all COLAs were to be effective in December and payable in January and were to be based on the change in the average monthly CPI-W from third-quarter to third-quarter. This formula and schedule are the same as those used to calculate COLAs in the Social Security program, as required by P.L. 98-21 (Social Security Amendments of 1983). P.L. 98-369 (Deficit Reduction Act of 1984) specified that civilian and military retirement COLAs are to be paid in checks issued on the first business day of the month following the month in which they are effective. (COLAs that are effective in December are to be paid in checks issued in January.) P.L. 99-177 (Balanced Budget and Emergency Deficit Control Act of 1981 [Gramm-Rudman-Hollings]). This law suspended all civil service retirement COLAs for FY1986 and for all subsequent years in which the specified deficit reduction targets for the year would not otherwise be met. .c11173008Cost-of-Living Adjustments for Federal Civil Service Annuities  Congressional Research Service 3 P.L. 99-509 (Omnibus Budget Reconciliation Act of 1986). This law reinstated COLAs for programs in which they were subject to suspension under P.L. 99-177 for FY1987-FY1991. P.L. 100-119 (Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987). This law permanently exempted the programs subject to suspension of COLAs under P.L. 99-177 from the suspensions required by that law. P.L. 103-66 (Omnibus Budget Reconciliation Act of 1993). This law postponed the effective date of COLAs from December to March for FY1994-FY1996. The CPI measurement period was not changed. Table 1. COLAs in Civil Service Retirement Benefits Effective Datea CSRS Benefit Increase FERS Benefit Increase CPI Increase During COLA Measurement Period December 1965 6.1% — 4.6%January 1967 3.9 — 3.9May 1968 3.9 — 3.9March 1969 3.9 — 3.9November 1969 5.0 — 4.0August 1970 5.6 — 4.6June 1971 4.5 — 3.5July 1972 4.8 — 3.8July 1973 6.1 — 5.1January 1974 5.5 — 4.5July 1974 6.3 — 5.3January 1975 7.3 — 6.3August 1975 5.1 — 4.1March 1976 5.4 — 4.4March 1977 4.8 — 4.8September 1977 4.3 — 4.3March 1978 2.4 — 2.4September 1978 4.9 — 4.9March 1979 3.9 — 3.9September 1979 6.9 — 6.9March 1980 6.0 — 6.0September 1980 7.7 — 7.7March 1981 4.4 — 4.4March 1982 8.7 — 8.7April 1983 3.9 — 3.9December 1984 3.5 — 3.5December 1985 0.0 — 3.1December 1986 1.3 — 1.3December 1987 4.2 — 4.2December 1988 4.0 3.0 4.0December 1989 4.7 3.7 4.7December 1990 5.4 4.4 5.4December 1991 3.7 2.7 3.7December 1992 3.0 2.0 3.0.c11173008Cost-of-Living Adjustments for Federal Civil Service Annuities  Congressional Research Service 4 Effective Datea CSRS Benefit Increase FERS Benefit Increase CPI Increase During COLA Measurement Period March 1994 2.6 2.0 2.6March 1995 2.8 2.0 2.8March 1996 2.6 2.0 2.6December 1996 2.9 2.0 2.9December 1997 2.1 2.0 2.1December 1998 1.3 1.3 1.3December 1999 2.4 2.0 2.4December 2000 3.5 2.5 3.5December 2001 2.6 2.0 2.6December 2002 1.4 1.4 1.4December 2003 2.1 2.0 2.1December 2004 2.7 2.0 2.7December 2005 4.1 3.1 4.1December 2006 3.3 2.3 3.3December 2007 2.3 2.0 2.3December 2008 5.8 4.8 5.8December 2009 0.0 0.0 -2.1December 2010 0.0 0.0 -0.6December 2011 3.6 2.6 3.6December 2012 1.7 1.7 1.7December 2013 1.5 1.5 1.5December 2014 1.7 1.7 1.7Source: The Congressional Research Service. Note: Includes pensions for Members of Congress. a. Benefit increases are actually paid in checks issued the first of the following month.  Author Contact Information  Katelin P. Isaacs Analyst in Income Security kisaacs@crs.loc.gov, 7-7355        .c11173008

[Excerpt] Cost-of-living adjustments (COLAs) for the Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS) are based on the rate of inflation as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). COLAs for both CSRS and FERS are determined by the average monthly CPI-W during the third quarter (July to September) of the current calendar year and the third quarter of the base year, which is the last previous year in which a COLA was applied. The “effective date” for COLAs is December, but they first appear in the benefit checks issued during the following January. All CSRS retirees and survivors receive COLAs. Under FERS, however, non-disabled retirees under the age of 62 do not receive COLAs. Survivors and disabled retirees are eligible for COLAs under FERS regardless of age. CSRS pays a COLA that is equal to the percentage change in the CPI-W during the measurement period, but COLAs under FERS are limited if the rate of inflation is greater than 2.0%. If the rate of inflation during the measurement period is between 2.0% and 3.0%, the COLA under FERS is 2.0%. If inflation is greater than 3.0%, then the COLA for FERS benefits is equal to the CPI-W minus one percentage point. Congress passed the first law requiring automatic COLAs for federal civil service retirement benefits in 1962, and it has adjusted either the formula by which they are calculated or the date on which they take effect more than a dozen times since then. If consumer prices as measured by the CPI-W do not increase from the third quarter of the base year to the third quarter of the current calendar year, there is no COLA for annuities paid under CSRS or FERS. From the third quarter of 2014 to the third quarter of 2015, the CPI-W fell by 0.4%. Therefore, there will be no COLA under either CSRS or FERS in January 2016.CRS_Cost_of_living_adjustments_for_federal_service_annuities.pdf: 71 downloads, before Oct. 1, 2020

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This report discusses the Cost-of-living adjustments (COLAs) for the Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS) are based on the rate of inflation as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). All CSRS retirees and survivors receive COLAs. Under FERS, however, non-disabled retirees under age 62 do not receive COLAs. This report discusses cost-of-living adjustments for government retirees, as well as related legislation

CRS Report for CongressPrepared for Members and Committees of Congress          Cost-of-Living Adjustments for Federal Civil Service Annuities Katelin P. Isaacs Analyst in Income Security November 1, 2013 Congressional Research Service 7-5700 www.crs.gov 94-834 Cost-of-Living Adjustments for Federal Civil Service Annuities  Congressional Research Service Summary Cost-of-living adjustments (COLAs) for the Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS) are based on the rate of inflation as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). COLAs for both CSRS and FERS are determined by the average monthly CPI-W during the third quarter (July to September) of the current calendar year and the third quarter of the base year, which is the last previous year in which a COLA was applied. The “effective date” for COLAs is December, but they first appear in the benefit checks issued during the following January. All CSRS retirees and survivors receive COLAs. Under FERS, however, non-disabled retirees under the age of 62 do not receive COLAs. Survivors and disabled retirees are eligible for COLAs under FERS regardless of age. CSRS pays a COLA that is equal to the percentage change in the CPI-W during the measurement period, but COLAs under FERS are limited if the rate of inflation is greater than 2.0%. If the rate of inflation during the measurement period is between 2.0% and 3.0%, the COLA under FERS is 2.0%. If inflation is greater than 3.0%, then the COLA for FERS benefits is equal to the CPI-W minus one percentage point. Congress passed the first law requiring automatic COLAs for federal civil service retirement benefits in 1962, and it has adjusted either the formula by which they are calculated or the date on which they take effect more than a dozen times since then. From the third quarter of 2012 to the third quarter of 2013, the CPI-W increased by 1.5%. Therefore, the CSRS COLA beginning in January 2014 is 1.5%. The January 2014 FERS COLA is also 1.5%.   Cost-of-Living Adjustments for Federal Civil Service Annuities  Congressional Research Service Contents COLA Formulas and Amounts ........................................................................................................ 1 History of Legislation Affecting COLAs for Civil Service Annuities ............................................. 1  Tables Table 1. COLAs in Civil Service Retirement Benefits .................................................................... 3  Contacts Author Contact Information............................................................................................................. 4 Acknowledgments ........................................................................................................................... 4  Cost-of-Living Adjustments for Federal Civil Service Annuities  Congressional Research Service 1 COLA Formulas and Amounts Only federal employees hired before 1984 participate in the Civil Service Retirement System (CSRS). The CSRS is closed to new entrants and will expire with the death of the last CSRS annuitant sometime around the year 2075. Civilian federal employees who were hired in 1984 or later participate in the Federal Employees Retirement System (FERS), as do employees who voluntarily switched from CSRS to FERS during “open seasons” that were held in 1987 and 1998. The FERS program began operating on January 1, 1987. Cost-of-living adjustments (COLAs) for CSRS annuities are based on the average monthly percentage change in the CPI-W in the third quarter (July to September) of the current calendar year compared with the third quarter of the base year, which is the year in which the last COLA was applied.1 Adjustments are effective on the first day of the month preceding the month in which they are first paid. For example, the 2014 CSRS COLA of 1.5% is effective December 1, 2013, and first applies to benefits paid in January 2014. It is equal to the average monthly percentage change in the CPI-W between the third quarter of calendar year 2012 and the third quarter of 2013. COLAs for benefits paid under FERS also are based on the percentage change in the CPI-W from third quarter to third quarter, but payment of COLAs under FERS is limited according to the eligibility category of the beneficiary and the rate of inflation. COLAs are not paid to non-disabled FERS retirees as long as they are under the age of 62. COLAs are paid to survivors and disabled FERS retirees of any age after the first year of disability. All COLAs paid under FERS are limited if the rate of inflation exceeds 2.0%, according to the following formula: Increase in CPI-W Increase (COLA) in FERS Benefits Under 2.0% Same as CPI-W increase 2.0% to 3.0% 2.0% More than 3.0% Increase in CPI-W minus 1 percentage point From the third quarter of 2012 to the third quarter of 2013, the CPI-W increased by 1.5%. Therefore, the COLA first paid out in January 2014 for both CSRS and FERS is 1.5%. History of Legislation Affecting COLAs for Civil Service Annuities P.L. 87-793 (enacted in 1962) was the first law that provided for automatic adjustments in civil service retirement and disability benefits whenever the CPI in the current year exceeded the CPI in the base year (the year in which the last adjustment occurred) by 3.0% or more. In 1965, this was changed to require an adjustment in benefits whenever the CPI for a given month was at least                                                  1 Between 1962 (when Congress passed the first law enacting automatic COLAs for federal civil service retirement benefits) and 2009, the base year—the year in which the last adjustment occurred—was also the previous year. Because the CPI-W decreased from the third quarter of 2008 to the third quarter of 2010, however, the base year for determining the COLA that was effective in December 2011 (and paid out in 2012) remained 2008. The base year for determining the COLA effective in December 2013 (and paid out in 2014) is 2012. See 5 U.S.C. §8340 and 5 U.S.C. §8462. Cost-of-Living Adjustments for Federal Civil Service Annuities  Congressional Research Service 2 3.0% higher than in the month when the last adjustment was made, and remained at that level or higher for three consecutive months. P.L. 91-93 (enacted in 1969) added one percentage to COLAs in addition to the percentage change in the CPI to offset the erosion of benefits that had occurred as a result of the time lag in the adjustment formula. (P.L. 91-179 did the same for COLAs paid to military retirees.) P.L. 94-440 (enacted in October 1976) repealed the one percentage point addition to COLAs. In addition, this law provided for automatic semi-annual adjustments in benefits based on the change in the CPI from June to December (effective the following March 1) and December to June (effective the following September 1). P.L. 97-35 (Omnibus Budget Reconciliation Act of 1981) replaced semi-annual COLAs with annual COLAs based on the December-to-December change in the CPI, payable in March of the following year. P.L. 97-253 (Omnibus Budget Reconciliation Act of 1982) delayed the implementation of COLAs by one month in FY1983, FY1984, and FY1985. The FY1983 COLA was effective April 1 rather than March 1. The FY1984 COLA was scheduled for May 1 and the FY1985 COLA was scheduled for June 1. This law also mandated that non-disabled retirees under the age of 62 would receive 50% of the projected CPI plus the full difference in the actual CPI over these projections. The law specified that the projected CPI was 6.6% for 1983, 7.2% for 1984, and 6.6% for 1985. This provision was repealed by the supplemental appropriations law that was passed in August 1984. COLAs for January 1985 and thereafter were to be the full amount for all retirees. P.L. 97-253 limited COLAs in certain cases. Under the restriction, an annuity could not be increased by a COLA to an amount that exceeded the greater of the maximum pay for a GS-15 federal employee or the final pay of the employee (or high-3 average pay, if greater), increased by the average annual percentage change (compounded) in rates of pay of the General Schedule for the period beginning on the retiree’s annuity starting date and ending on the effective date of the adjustment. P.L. 98-270 (Omnibus Budget Reconciliation Act of 1983, enacted April 1984) delayed the COLA scheduled for May 1984 until December (payable in January 1985). Thereafter, all COLAs were to be effective in December and payable in January and were to be based on the change in the average monthly CPI-W from third-quarter to third-quarter. This formula and schedule are the same as those used to calculate COLAs in the Social Security program, as required by P.L. 98-21 (Social Security Amendments of 1983). P.L. 98-369 (Deficit Reduction Act of 1984) specified that civilian and military retirement COLAs are to be paid in checks issued on the first business day of the month following the month in which they are effective. (COLAs that are effective in December are to be paid in checks issued in January.) P.L. 99-177 (Balanced Budget and Emergency Deficit Control Act of 1981 [Gramm-Rudman-Hollings]). This law suspended all civil service retirement COLAs for FY1986 and for all subsequent years in which the specified deficit reduction targets for the year would not otherwise be met. Cost-of-Living Adjustments for Federal Civil Service Annuities  Congressional Research Service 3 P.L. 99-509 (Omnibus Budget Reconciliation Act of 1986). This law reinstated COLAs for programs in which they were subject to suspension under P.L. 99-177 for FY1987-FY1991. P.L. 100-119 (Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987). This law permanently exempted the programs subject to suspension of COLAs under P.L. 99-177 from the suspensions required by that law. P.L. 103-66 (Omnibus Budget Reconciliation Act of 1993). This law postponed the effective date of COLAs from December to March for FY1994-FY1996. The CPI measurement period was not changed. Table 1. COLAs in Civil Service Retirement Benefits Effective Datea CSRS Benefit Increase FERS Benefit Increase CPI Increase During COLA Measurement Period December 1965 6.1% — 4.6%January 1967 3.9 — 3.9May 1968 3.9 — 3.9March 1969 3.9 — 3.9November 1969 5.0 — 4.0August 1970 5.6 — 4.6June 1971 4.5 — 3.5July 1972 4.8 — 3.8July 1973 6.1 — 5.1January 1974 5.5 — 4.5July 1974 6.3 — 5.3January 1975 7.3 — 6.3August 1975 5.1 — 4.1March 1976 5.4 — 4.4March 1977 4.8 — 4.8September 1977 4.3 — 4.3March 1978 2.4 — 2.4September 1978 4.9 — 4.9March 1979 3.9 — 3.9September 1979 6.9 — 6.9March 1980 6.0 — 6.0September 1980 7.7 — 7.7March 1981 4.4 — 4.4March 1982 8.7 — 8.7April 1983 3.9 — 3.9December 1984 3.5 — 3.5December 1985 0.0 — 3.1December 1986 1.3 — 1.3December 1987 4.2 — 4.2December 1988 4.0 3.0 4.0December 1989 4.7 3.7 4.7December 1990 5.4 4.4 5.4December 1991 3.7 2.7 3.7December 1992 3.0 2.0 3.0Cost-of-Living Adjustments for Federal Civil Service Annuities  Congressional Research Service 4 Effective Datea CSRS Benefit Increase FERS Benefit Increase CPI Increase During COLA Measurement Period March 1994 2.6 2.0 2.6March 1995 2.8 2.0 2.8March 1996 2.6 2.0 2.6December 1996 2.9 2.0 2.9December 1997 2.1 2.0 2.1December 1998 1.3 1.3 1.3December 1999 2.4 2.0 2.4December 2000 3.5 2.5 3.5December 2001 2.6 2.0 2.6December 2002 1.4 1.4 1.4December 2003 2.1 2.0 2.1December 2004 2.7 2.0 2.7December 2005 4.1 3.1 4.1December 2006 3.3 2.3 3.3December 2007 2.3 2.0 2.3December 2008 5.8 4.8 5.8December 2009 0.0 0.0 -2.1December 2010 0.0 0.0 -0.6December 2011 3.6 2.6 3.6December 2012 1.7 1.7 1.7December 2013 1.5 1.5 1.5Source: The Congressional Research Service. Note: Includes pensions for Members of Congress. a. Benefit increases are actually paid in checks issued the first of the following month.  Author Contact Information  Katelin P. Isaacs Analyst in Income Security kisaacs@crs.loc.gov, 7-7355     Acknowledgments This report was originally prepared by former CRS Specialist Patrick Purcell.  

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Cost-of-Living Adjustments for Federal Civil Service Annuities

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