018 COLA ANNOUNCED FOR FEDERAL RETIREES
copied from UPMA GOLD
The 2018 cost-of-living adjustment (COLA) for Social Security
recipients and annuitants in both the Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS) will increase 2.0 percent, the Social Security Administration announced
today. Because the COLA amount is not more than 2%, both CSRS and FERS retirees will receive the same percentage. CSRS COLA and FERS COLA are awarded based on the following
• If the CSRS COLA is more than 3%, the FERS COLA is 1% less
• If the CSRS COLA is more than 2% but less than 3%, then the FERS COLA is 2%.
• If the CSRS COLA is less than 2%, then the FERS COLA is the same.
The 2018 federal retiree COLA is much larger than last year's 0.3 percent increase and the zero COLA in 2016. It's also the first year the CSRS and FERS COLA has been 2.0 percent or more since 2012.
NAPS Leg/Reg Update - October 26, 2017
Big Cuts in Civil Service Retirement Benefits Defeated ... For Now
Federal and postal employees dodged a bullet aimed at their retirement benefits when the House of Representatives today refrained from including any retirement benefit cuts in the final version of the Fiscal Year 2018 budget resolution (H Con Res 71).
The House of Representatives approved the FY 2018 budget resolution on a 216-212 vote, following the Senate’s approval last Thursday of the same budget resolution on a 51-49 vote.
No instructions are contained in the budget resolution that would reduce federal and postal employment benefits, a remarkable outcome compared to President Trump’s proposed budget and earlier House action.
President Trump’s proposed budget, sent to Congress last spring, would have imposed nearly $150 billion in retirement benefit cuts. The Trump budget would have: eliminated annual cost-of-living increases for FERS retirees; lowered COLA’s for Civil Service CSRS enrollees by 0.5 percent; increased employee retirement contributions by 1 percent every year over the next 5-6 years; and eliminated annuity supplements for FERS retirees who stop working before they are eligible for Social Security benefits.
Bruce Moyer, NAPS Legislative Counsel