2022 COLA, SS and CSRS get more than FERS
Moderator: Aitrus
- Tomanyiron
- Posts: 4973
- Joined: Mon Apr 26, 2010 6:39 am
2022 COLA, SS and CSRS get more than FERS
“The cost-of-living adjustment (COLA) for next year will be announced in October. The inflation figures for July-September of this year will tell us how much the COLA will be starting in January.
At the moment, one estimate of the COLA for 2022 is an increase of 6.2%. If this projection becomes reality, it is about five times the 1.3% COLA increase in January 2021. It would also be the largest COLA in thirty-nine years.
Social Security and CSRS pensions receive COLAs based on the rate of inflation. The COLA for FERS pensions is not as generous.
If the inflation rate is less than 2% in a year, the FERS pension will get the full amount of the COLA. If inflation rises between 2% and 3%, the FERS COLA will be 2%. If inflation is up more than 2%, the FERS COLA is the inflation amount minus 1%.
In other words, when the measure of inflation is up more than 2%, a FERS pension increase will fall behind. For a person who may be retired for many years, this difference is likely to be substantial over time.
So, when inflation is above 3% using the CPI-W index, FERS pensions will lag 1% behind this inflation rate every year in which this occurs.”
For more on the ‘whys’ and ‘why nots’ read, https://www.fedsmith.com/2021/08/09/202 ... different/
At the moment, one estimate of the COLA for 2022 is an increase of 6.2%. If this projection becomes reality, it is about five times the 1.3% COLA increase in January 2021. It would also be the largest COLA in thirty-nine years.
Social Security and CSRS pensions receive COLAs based on the rate of inflation. The COLA for FERS pensions is not as generous.
If the inflation rate is less than 2% in a year, the FERS pension will get the full amount of the COLA. If inflation rises between 2% and 3%, the FERS COLA will be 2%. If inflation is up more than 2%, the FERS COLA is the inflation amount minus 1%.
In other words, when the measure of inflation is up more than 2%, a FERS pension increase will fall behind. For a person who may be retired for many years, this difference is likely to be substantial over time.
So, when inflation is above 3% using the CPI-W index, FERS pensions will lag 1% behind this inflation rate every year in which this occurs.”
For more on the ‘whys’ and ‘why nots’ read, https://www.fedsmith.com/2021/08/09/202 ... different/
- Snapdragon
- Posts: 247
- Joined: Tue Jan 29, 2013 5:26 pm
Re: 2022 COLA, SS and CSRS get more than FERS
My husband is in this FERS boat, but I'm also thankful he is even getting a COLA because he is special provision. There are retirees out there that will be getting 0% COLA.
- scotth2010
- Posts: 34
- Joined: Tue May 19, 2015 11:04 am
Re: 2022 COLA, SS and CSRS get more than FERS
My father in-law, retired state employee for 30 years. I recently told him that 65 is the new 55. Meaning 30 years ago when pensions were plentiful many retired prior to 65, today retiring at 65 is the goal. And I foresee my children 30 years from now retiring at 70-75. We CS are just to shut up and be happy with whatever we get, because pensions are a thing of the past for the rest of the American workers.
Re: 2022 COLA, SS and CSRS get more than FERS
shoot; as soon as I hit my 30 years at 58.5 i'm retiring. I have a little over 13 years left I have two soon to be 8 year olds as well; just takes planning and a bit of hope decent returns continue. And I don't max out my tsp either.
Re: 2022 COLA, SS and CSRS get more than FERS
but on this topic: I'm hoping for at least 4% cola come January; I don't expect we'll receive close to 6%
Re: 2022 COLA, SS and CSRS get more than FERS
Another interesting tidbit is that Retired FERS employees under the age of 62 who aren't disabled will get 0% for a COLA until they turn 62. Another reason why I plan to not retire until I am 62. That way I can catch some of the COLAs they give for Federal Employees (even though this year we are going to get less than 1/2 of the calculated COLA).
Re: 2022 COLA, SS and CSRS get more than FERS
The FERS supplement makes up for the loss of COLAs prior to 62. The 1.1% increase at 62 is usually the. reason most people wait
Re: 2022 COLA, SS and CSRS get more than FERS
Our agency is having a really hard time with recruitment. Anything less than a 10% increase wont help make us competitive to potential new hires.
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