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Washington, D.C.—Reflecting the sharp rise in the cost of living this past year, government data released today triggers the largest cost-of-living adjustments (COLAs) for federal retirees since 1982.

“These increases of 4.8 and 5.8 percent are a small bit of welcome relief for retired federal workers who contributed so much to our nation,” said President Colleen M. Kelley of the National Treasury Employees Union (NTEU).

The retired federal workers in line for a 5.8 percent COLA are those who earned annuities under the Civil Service Retirement System (CSRS.) For federal retirees covered under the Federal Employees Retirement System (FERS), which includes employees hired in 1984 or later, the formula will generate a 4.8 percent adjustment in their annuities. Last year’s increase was 2.3 percent for CSRS retirees and 2 percent for FERS recipients. FERS recipients also receive a Social Security benefit for their government service. That portion of their retirement will increase by 5.8 percent for FERS retirees over age 62.

The increase is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers which measures the changes in costs of goods and services over four quarters ending Sept. 30. The increase in annuities will be reflected in January payments to federal retirees.

“The COLA increase for retirees is critical. At the same time, NTEU is pursuing other changes that will also have a positive impact on their retirement income,” said President Kelley.

These include working to secure for retirees the same right current federal employees enjoy to use pre-tax income to pay health insurance premiums; raise the government’s share of premiums under the Federal Employees Health Benefits Program from the current average of 72 percent to the average of 80 percent that is commonly paid by private sector employers; and seek repeal or significant modifications in two provisions of law that adversely impact the standard of living for federal retirees—the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).

“We continue our efforts, at both the national and grassroots levels, to build bipartisan congressional understanding of and support for positive action each of these important issues,” said President Kelley.