RETIREMENT CORNER
5th Contract COLA: $1,331
The fifth regular COLA under the 2019-2023 National Agreement is
$1,331 following the release of the January 2022 Consumer Price Index.
On
February 10, 2022, the Bureau of Labor Statistics announced that the
CPI for Urban Wage Earners and Clerical Workers (CPI-W, 1967=100) stood
at 823.000 in January, 77.624 points above the base level of 745.376 in
July 2019. The 5th COLA stood at 64 cents per hour or $1,331 annually.
The
sixth COLA will be based on the increase in the CPI-W between the base
index month and July 2022, less any previously calculated COLAs, and
will be payable the second full pay period following the release of the
July 2022 index. The five COLAs that have been calculated under the
2019-2023 National Agreement, totaling 194 cents per hour, are as
follows: 1st COLA, 8 cents per hour ($166 annually), 2nd COLA, 9 cents
per hour ($188 annually), 3rd COLA, 20 cents per hour ($416 annually),
the 4th COLA, 93 cents per hour ($1,934 annually), and the 5th COLA, 64
cents per hour ($1,331 annually)
.
2023 Retiree COLAs: Projection: 2.9% as of January 2022
The
2023 COLAs for CSRS and FERS benefits are based on the increase in the
average CPI-W between the 3rd quarter of 2021 (268.421) and the 3rd
quarter of 2022 (TBA).
Based on the January 2022 CPI-W (1982-84)
of 276.296, the 2023 CSRS and FERS COLAs are currently projected to be
2.9%. The 2023 retiree COLA calculation will be finalized in October
2022 with the release of the CPI-W for September 2022.
CSRS
annuities receive full COLAs; COLAs for FERS annuities are payable for
retirees 62 and older and may be reduced by up to one percentage point
from the increase in the CPI.
2023 FECA COLA Projection: 0.9% as of January 2022
Based
on the release of the January 2022 CPI-W (1982-84=100), the 2022 FECA
COLA projection is 0.9%. The January 2022 CPI-W of 276.296 was 0.9%
above the December 2021 base index (276.296). The 2023 FECA COLA
calculation will be finalized when the December 2022 CPI-W is published
during the month of January 2023.
FECA COLAs are applicable only
in cases where death or disability occurred more than one year prior to
the adjustment’s effective date.