Senate Introduces Equal COLA Act
With NARFE’s support, Sen. Alex Padilla, D-CA, introduced S.4221, the Equal COLA Act, on May 16. Companion legislation to H.R. 304, S. 4221 would ensure that cost-of-living adjustments (COLAs) to Federal Employees Retiree System (FERS) annuities match the measured change in consumer prices.
Currently, FERS retirees do not receive a full COLA if consumer prices increase by more than 2 percent. If consumer prices increase between 2 and 3 percent, FERS COLAs round down to 2 percent. If consumer prices are above 3 percent, FERS COLAs are always 1 percentage point less. This policy, enacted in the 1980s with the establishment of FERS, fails to protect the earned value of FERS annuities.
Mirroring its House counterpart, S. 4221 would provide full COLAs to FERS retirees, creating parity with Civil Service Retirement System (CSRS) and Social Security COLAs. Without this amendment to the current system, FERS retirees will continue to see their annuities, earned through years of dedicated public service, decrease in value annually – the very issue COLAs were designed to prevent.
NARFE National President Ken Thomas issued a statement urging lawmakers to pass the Equal COLA Act, which would “result in more equitable COLA calculations for FERS retirees.”
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