NARFE Applauds Introduction of Legislation to Provide FERS Retirees with a Full COLA

  
ALEXANDRIA, Va. (November 16, 2018) – In response to Representative Gerry Connolly, D-VA, introducing the Equal COLA Act – legislation that would provide retirees of the Federal Employees Retirement System (FERS) with cost-of-living adjustments (COLA) to their annuities equal to the increase in consumer prices (as measured by the CPI-W from the relevant period) when the change is greater than 2 percent – the National Active and Retired Federal Employees Association (NARFE) National President Ken Thomas issued the following statement:

“NARFE thanks Congressman Connolly for leading the effort to provide FERS retirees a full COLA each year based on the actual measured change in consumer prices. This is a common-sense policy that will allow FERS annuities to keep up with inflation.

“Pursuant to federal law and the annual change in consumer prices measured by the Bureau of Labor Statistics (BLS), the COLA to Civil Service Retirement System (CSRS) annuities and Social Security benefits will be 2.8 percent in 2019. Unfortunately, it will be only 2 percent for FERS annuities.

“Nearly 800,000 FERS retirees are wondering why they are only receiving a 2 percent COLA when consumer prices increased by 2.8 percent. The unsatisfying answer dates back to when FERS was created in the 1980s and a bargain was struck in Congress that limited the FERS COLA to 2 percent when consumer prices increase between 2 and 3 percent. That was the wrong policy then, as it is now, because it prevents FERS annuities from keeping up with inflation, which is the whole point of a COLA.

“Congressman Connolly’s legislation would change this unfair policy to ensure FERS retirees receive a full COLA each year. If swiftly enacted, his bill would ensure FERS retirees receive a 2.8 percent COLA instead of a 2 percent COLA next year. Moving forward, the legislation creates parity between the FERS and CSRS COLAs.

“Without adequate COLAs, FERS retirees will see inflation erode the value of their earned retirement income year after year; yet, that is exactly what COLAs are designed to prevent. Federal retirees are not asking to be made better off than they were last year. We just want to maintain the value of what we have rightfully earned through careers of service.”

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The National Active and Retired Federal Employees Association (NARFE), one of America’s oldest and largest associations, was founded in 1921 with the mission of protecting the earned rights and benefits of America’s active and retired federal workers. The largest federal employee/retiree organization, NARFE represents the interests of 5 million current and future federal annuitants, spouses and survivors.

CONTACT:
Jill Talley
NARFE Deputy Director, Public Relations
jtalley@narfe.org
(703)838-7760