On the Down Side: Your COLA Didn’t Keep Up With Inflation ![]() In this sense, rising inflation seems to be a good thing for seniors, as it pushes up the monthly income they receive in retirement. Social Security checks jumped by a whopping 5.9%, pushing the average amount paid to retirees to $1,657 from $1,565 in 2021. 1, 2022, was the highest increase Americans had seen in 40 years. On the Plus Side: Your COLA Rose Dramatically This Year Here’s a look at the interplay between inflation and the COLA for 20, along with some suggestions on how to combat inflation as a retiree. See: Ways You Can Lose Your Social Security Benefits Social Security: New Bill Could Give Seniors an Extra $2,400 a Year In reality, the COLA often falls short in terms of covering rising costs during inflationary periods. In principle, it’s a great facet of the program. The 2023 FECA COLA calculation will be finalized when the December 2022 CPI-W is published during the month of January 2023.įECA COLAs are applicable only in cases where death or disability occurred more than one year prior to the adjustment’s effective date.The Social Security cost-of-living adjustment, or COLA, is designed to ensure that benefits paid out to program beneficiaries keep up with inflation. The 2023 retiree COLA calculation will be finalized in October 2022 with the release of the CPI-W for September 2022.ĬSRS 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.Ģ023 FECA COLA Projection: 5.1% as of June 2022īased on the release of the May 2022 CPI-W (1982-84=100), the 2022 FECA COLA projection is 5.1%. 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).īased on the May 2022 CPI-W (1982-84) of 288.0 CSRS and FERS COLAs are currently projected to be 7.3%. 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 fifth COLA, 64 cents per hour ($1,331 annually).Ģ023 Retiree COLAs Projection: 7.3% as of June 2022 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 accumulated COLA through May stood at 87 cents per hour or $1,810 annually. On June 10, 2022, the Bureau of Labor Statistics announced that the CPI for Urban Wage Earners and Clerical Workers (CPI-W, 1967=100) stood at 857.929 in May, 112.553 points above the base level of 745.376 in July 2019. The projected accumulation toward the sixth regular COLA under the 2019-2023 National Agreement stood at $1,810 annually in June following the release of the May 2022 Consumer Price Index. Contract COLA: Accumulated COLA is $1,810 through June 2022
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