Shows & Panels
- The 2014 Big Picture on Cyber Security
- AFCEA Answers
- Ask the CIO
- Connected Government
- Consolidating Mission-critical Systems
- Constituent Servicing
- Continuous Monitoring: Tools and Techniques for Trustworthy Government IT
- The Data Privacy Imperative: Safeguarding Sensitive Data
- Eliminating the Pitfalls: Steps to Virtualization in Government
- Federal Executive Forum
- Federal Tech Talk
- Government Cloud Brokerage: Who, What, When, Where, Why?
- Government Mobility
- Mission-critical Apps in the Cloud
- Mobile Device Management
- The Modern Federal Threat Landscape
- The Path from Legacy Systems
- Understanding the Intersection of Customer Service and Security in the Cloud
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In the 1980s, Congress delayed and even rescinded some adjustments.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.