Shows & Panels
- AFCEA Answers
- Ask the CIO
- The Big Data Dilemma
- Carrying On with Continuity of Operations
- Connected Government
- Constituent Servicing
- Continuous Monitoring: Tools and Techniques for Trustworthy Government IT
- The Cyber Imperative
- Cyber Solutions for 2013 and Beyond
- Expert Voices
- Federal Executive Forum
- Federal IT Challenge
- Federal Tech Talk
- Mission-critical Apps in the Cloud
- The Path from Legacy Systems
- The Real Deal on Digital Government
- The Reality of Continuous Monitoring... Is Your Agency Secure?
- Veterans in Private Sector: Making the Transition
Shows & Panels
In COLA bump, not all fed retirees treated same
Tuesday - 10/25/2011, 10:18am EDT
The 3.6 percent increase is the first raise since 2009, following two years of mostly flat inflation.
David Snell, the director of retirement benefits at the National Active and Retired Federal Employees Association, joined the Federal Drive with Tom Temin and Amy Morris to discuss how the COLA bump affects feds differently.
Federal employees who retired under the Civil Service Retirement System, which was phased out in 1984 — receive the full COLA. However, retirees under the newer Federal Employees Retirement System will receive 1 percent less than the full amount, under an OPM formula for calculating feds' COLAs.
It turns out, since 1975 there have only been two years the Social Security Administration hasn't given a cost-of-living increase — the last two.
In the 1980s, Congress delayed and even rescinded some adjustments. However, in recent memory, COLA increase have become dependable.
"For a while now, COLA's have been pretty steady, because inflation has been pretty steady," Snell said.