On February 8, Rep. Gerry Connolly (D-VA) introduced the Equal COLA Act. FMA supports this bill, which aims to bring equity to the way the cost-of-living-adjustment (COLA) is determined for all federal retirees. The bill would make the annual COLA for both the Civil Service Retirement System (CSRS) and the Federal Employee Retirement System (FERS) equivalent to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). In a press release upon introduction, Rep. Connolly wrote, “this change would institute long-overdue parity between the two federal retirement systems and result in a more just retirement benefits system for all federal workers.”

FERS retirees’ COLAs are reduced under current law: When the CPI-W increase is 3 percent or greater, like the 8.7 percent in 2023, the FERS COLA is reduced by 1 percent. If the CPI-W is between 2 and 3 percent, FERS retirees see a 2 percent COLA, and when the CPI-W is less than 2 percent, the COLA is equal to the price index. H.R. 866 would allow FERS employees to combat inflation and maintain the value of their annuities. The bill, cosponsored by Rep. Abigail Spanberger (D-VA), was referred to the House Committee on Oversight and Accountability.

To follow the progress of H.R. 866, click here.