September 14, 2021

Consumer Prices Increase in August

Relevant to the cost-of-living-adjustment (COLA) to civil service annuities for 2022, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased by 0.22 percent in August 2021.

As announced in October 2020, federal retirees received a 1.3 percent increase for Civil Service Retirement System (CSRS) annuities, Federal Employees Retirement System (FERS) annuities and Social Security benefits in January 2021.

The CPI-W figure for August 2021 was 268.387, 5.9 percent higher than the average CPI-W for the third quarter of 2020, which was 253.412 (1982-84 = 100). The annual COLA is determined by comparing the change in the CPI-W from year to year, based on the average of the third-quarter months of July, August and September.

Under current law, COLAs for federal retirement annuities, as well as for military retiree annuities and Social Security payments, are determined by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which is calculated by economists and statisticians with the Bureau of Labor Statistics (BLS). The CPI-W is the current index used for measuring increases in the prices of consumer goods, including food and beverages, housing, clothing, transportation, medical care, recreation, education, communication, and more.

FECA COLAs

As announced in January 2021, individuals receiving benefits under the Federal Employees’ Compensation Act (FECA) received a 1.5 percent COLA in March 2021.

This number was determined by comparing the December 2020 CPI-W (254.081) to the December 2019 CPI-W (250.452). FECA COLAs are determined by a different statutorily set methodology than the COLA for other federal retirees. Benefits awarded under the Federal Employees’ Compensation Act (FECA) to individuals suffering work-related injuries or illnesses, are adjusted according to each calendar year’s percentage change in the CPI-W (rather than as measured by the change from the highest previous third quarter average).

Looking ahead to the 2022 COLA for FECA benefits, the August 2021 CPI-W figure (268.387) is 5.63 percent higher than the December 2020 CPI-W figure (254.081).

The Consumer Price Index for September 2021 is scheduled to be released on Wednesday, October 13, 2021 at 8:30 a.m. (ET).

CPI-W Monthly % Change % Toward 2022 COLA
July 2020 252.636 0.63 0.97
Aug. 2020 253.597 0.38 1.36
Sept. 2020 254.004 0.16 1.28
Oct. 2020 254.076 0.03 0.26
Nov. 2020 253.826 -0.1 0.16
Dec. 2020 254.081 0.1 0.26
Jan. 2021 255.296 0.48 0.74
Feb. 2021 256.843 0.61 1.35
Mar. 2021 258.935 0.81 2.2
Apr. 2021 261.237 0.89 3.08
May 2021 263.612 0.91 4.03
June 2021 266.412 1.06 5.13
July 2021 267.789 0.52 5.67
Aug. 2021 268.387 0.22 5.91

National Active and Retired

FEDERAL EMPLOYEES Association

NARFE (National Active and Retired Federal Employees Association) 606 N. Washington St., Alexandria, VA 22314, Phone: (703) 838-7760, Fax: (703) 838-7785.

 

This is the only website that reflects the official opinions and positions of the National Active and Retired Federal Employees Association (NARFE). Opinions and/or positions that appear on any other site bearing NARFE's name or seal are not necessarily those of NARFE. Click here for Privacy Statement.   NARFE has been certified by Dun & Bradstreet.

September 14, 2021

Consumer Prices Increase in August

Relevant to the cost-of-living-adjustment (COLA) to civil service annuities for 2022, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased by 0.22 percent in August 2021.

As announced in October 2020, federal retirees received a 1.3 percent increase for Civil Service Retirement System (CSRS) annuities, Federal Employees Retirement System (FERS) annuities and Social Security benefits in January 2021.

The CPI-W figure for August 2021 was 268.387, 5.9 percent higher than the average CPI-W for the third quarter of 2020, which was 253.412 (1982-84 = 100). The annual COLA is determined by comparing the change in the CPI-W from year to year, based on the average of the third-quarter months of July, August and September.

Under current law, COLAs for federal retirement annuities, as well as for military retiree annuities and Social Security payments, are determined by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which is calculated by economists and statisticians with the Bureau of Labor Statistics (BLS). The CPI-W is the current index used for measuring increases in the prices of consumer goods, including food and beverages, housing, clothing, transportation, medical care, recreation, education, communication, and more.

FECA COLAs

As announced in January 2021, individuals receiving benefits under the Federal Employees’ Compensation Act (FECA) received a 1.5 percent COLA in March 2021.

This number was determined by comparing the December 2020 CPI-W (254.081) to the December 2019 CPI-W (250.452). FECA COLAs are determined by a different statutorily set methodology than the COLA for other federal retirees. Benefits awarded under the Federal Employees’ Compensation Act (FECA) to individuals suffering work-related injuries or illnesses, are adjusted according to each calendar year’s percentage change in the CPI-W (rather than as measured by the change from the highest previous third quarter average).

Looking ahead to the 2022 COLA for FECA benefits, the August 2021 CPI-W figure (268.387) is 5.63 percent higher than the December 2020 CPI-W figure (254.081).

The Consumer Price Index for September 2021 is scheduled to be released on Wednesday, October 13, 2021 at 8:30 a.m. (ET).

CPI-W Monthly % Change % Toward 2022 COLA
July 2020 252.636 0.63 0.97
Aug. 2020 253.597 0.38 1.36
Sept. 2020 254.004 0.16 1.28
Oct. 2020 254.076 0.03 0.26
Nov. 2020 253.826 -0.1 0.16
Dec. 2020 254.081 0.1 0.26
Jan. 2021 255.296 0.48 0.74
Feb. 2021 256.843 0.61 1.35
Mar. 2021 258.935 0.81 2.2
Apr. 2021 261.237 0.89 3.08
May 2021 263.612 0.91 4.03
June 2021 266.412 1.06 5.13
July 2021 267.789 0.52 5.67
Aug. 2021 268.387 0.22 5.91

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NARFE (National Active and Retired Federal Employees Association) 606 N. Washington St., Alexandria, VA 22314, Phone: (703) 838-7760, Fax: (703) 838-7785.

 

This is the only website that reflects the official opinions and positions of the National Active and Retired Federal Employees Association (NARFE). Opinions and/or positions that appear on any other site bearing NARFE's name or seal are not necessarily those of NARFE. Click here for Privacy Statement.   NARFE has been certified by Dun & Bradstreet.