Podcasts Government Federal Drive with Tom Temin A diet COLA for FERS retirees has compounding effects on retirement savings

A diet COLA for FERS retirees has compounding effects on retirement savings

Published: Oct. 25, 2023, 12:01 p.m.

Federal retirees were feverishly hitting the refresh button on their internet browsers the morning of Oct. 12 as they awaited the Social Security Administration\u2019s announcement of next year\u2019s cost-of-living adjustment (COLA).\nThe anticipation to see the percentage for that 2024 COLA was no surprise. The annual adjustment, intended to keep retirees on pace with inflation, means gradually growing numbers for federal retirement annuities and Social Security checks.\nBut some federal retirees will not see that full percentage adjustment added to their annuities in January.\nWhen the federal government switched from the Civil Service Retirement System (CSRS) to the Federal Employee Retirement System (FERS) back in the 1980s, Congress opted to change the COLA calculation for FERS annuitants.\nLearn more about your ad choices. Visit podcastchoices.com/adchoices