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Retirees to See 1.7 Percent Cost-of-Living Adjustment

Federal retirees under both the Civil Service Retirement System and the Federal Employees Retirement System will receive a 1.7 percent boost in their benefits in 2015. For those federal retirees who have been retired less than a full year, the cost-of-living adjustment (COLA) is prorated to reflect the portion of the year the individual has been retired. 

This marks the third year in a row that the annual increase will be less than 2 percent. Social Security recipients and military retirees will also see their benefits adjusted by 1.7%.    

By law, the COLA is calculated by the Labor Department’s Bureau of Labor Statistics. It is based on the increase, if any, in the consumer price index that has occurred over the previous 12 months, ending on Sept. 30. Any COLA then takes effect three months later, in January. 

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