Equal COLA Act

This bill would make cost-of-living adjustments (COLAs) for Federal Employees Retirement System (FERS) pensions fully match inflation. Today, FERS COLAs are trimmed in higher-inflation years: if inflation is between 2% and 3%, the raise is capped at 2%; if it’s above 3%, the raise is inflation minus 1%. The bill ends those trims so the yearly raise equals the full change in the Consumer Price Index (CPI).

The change would apply to COLAs made after the bill becomes law, covering pensions that started before, on, or after that date. Annual increases would continue to take effect on December 1 and would match the percent change in the CPI, rounded to the nearest 1%.

• Who is affected: People receiving FERS pensions (retirees and their survivors).
• What changes: COLAs would match inflation instead of being reduced in higher-inflation years.
• When: Applies to COLAs made after enactment; adjustments occur each December 1.