Federal Retiree COLA 2027: CSRS Gets 3.6%, FERS Gets 2.6%
The two formulas
| System | 2027 COLA | Rule |
|---|---|---|
| CSRS (Civil Service Retirement System) | 3.6% | Full CPI increase, same as Social Security; no age condition |
| FERS (Federal Employees Retirement System) | 2.6% | CPI above 3% → CPI minus 1 point (see tiers below); generally only from age 62 |
The FERS diet-COLA tiers (statutory)
| If the CPI increase is… | FERS pays… |
|---|---|
| 2% or less | The full increase |
| Between 2% and 3% | 2.0% |
| Above 3% | The increase minus 1 point — 3.6% → 2.6% for 2027 |
What that means in dollars
| Monthly annuity | CSRS at 3.6% | FERS at 2.6% | Monthly gap |
|---|---|---|---|
| $1,000 | $1,036 (+$36) | $1,026 (+$26) | $10 |
| $2,000 | $2,072 (+$72) | $2,052 (+$52) | $20 |
| $3,000 | $3,108 (+$108) | $3,078 (+$78) | $30 |
| $4,000 | $4,144 (+$144) | $4,104 (+$104) | $40 |
| $5,000 | $5,180 (+$180) | $5,130 (+$130) | $50 |
Illustrative gross amounts before deductions (FEHB premiums, survivor elections, taxes). The one-point gap compounds: over a long retirement it is the single largest structural difference between the two systems' annuities.
Who actually receives a FERS COLA
Most FERS retirees must wait until age 62 for any COLA, no matter when they retired — a FERS annuity starting at 57 sits frozen for five years. The exceptions who receive COLAs earlier: disability annuitants, survivor annuitants, and retirees under the special provisions (law enforcement officers, firefighters, air traffic controllers and similar categories). CSRS annuitants receive the full COLA at any age. Two more mechanics worth knowing:
Proration. If your annuity began during 2026, your first COLA is prorated — 1/12 of the full adjustment for each month on the roll. The FERS supplement never adjusts. The annuity supplement paid as a bridge to age 62 has no COLA in any year, by statute.
Federal annuities are paid in arrears, so the December 2026 annuity — the first with the increase — arrives January 4, 2027, the first business day of the year. If you also receive Social Security, that benefit rises the full 3.6% on its own schedule (the 2027 guide); the two are independent.
Frequently asked questions
Why do FERS retirees get 2.6% instead of 3.6%?
The FERS statute caps the annuity COLA: when the CPI increase is between 2% and 3%, FERS pays 2%; when it exceeds 3%, FERS pays the increase minus one percentage point. With the 2027 CPI figure at 3.6%, the FERS COLA is 2.6%. CSRS has no such cap and pays the full 3.6%. The press nickname for the FERS formula is the 'diet COLA'.
I am a FERS retiree under 62. Do I get any COLA?
Generally no. Most FERS annuitants receive no COLA before 62, whenever they retired. The exceptions: disability annuitants, survivor annuitants, and retirees under the special provisions (law enforcement officers, firefighters, air traffic controllers and a few similar categories), who receive COLAs under their own rules.
Is my first COLA prorated?
Yes, if your annuity began during 2026. The first adjustment is prorated at 1/12 of the full COLA for each month you were on the annuity roll during the year before the COLA. Someone whose annuity started in July 2026 receives roughly half the full percentage in January 2027, then full adjustments after that.
Does the FERS annuity supplement get a COLA?
No. The FERS annuity supplement (the bridge benefit paid until 62) is never adjusted for cost of living, in any year.
When does the first increased federal annuity payment arrive?
Federal annuities are paid monthly in arrears. The COLA applies to the December 2026 annuity, which is paid on January 4, 2027 — the first business day after the New Year holiday and weekend. OPM shows the new amount in your annuity statement and Services Online account.
Sources: OPM, CSRS and FERS Handbook, chapter 2 (COLA rules, diet-COLA tiers, proration); 5 U.S.C. §§8340, 8462; SSA 2027 COLA announcement. Annuity figures are illustrations, not OPM determinations.