The annual COLA increase for federal retirees is still going up and will become effective in January 2007.
The rate of inflation is continuing its upward trend. This means that federal retirees will get a bump up in annuity payments in 2007 to help cover the rising cost of living.
Federal employees outside of the contiguous 48 states are paid differently than most FedSmith readers who usually get an annual raise and locality pay. OPM did a survey on housing costs in these areas outside the 48 contiguous states and has published the results.
The COLA adjustment for retirees won’t be final until the September figures are calculated. For now, the differential is 3.1%.
Many Federal retirees are on track for a 2.9% increase next year–and the figure is likely to be higher by the end of September.
Many federal retirees can look forward to a larger than expected increase in their annuity check in January 2006.
Some federal retirees may get a higher pay raise than active federal employees in 2006.
Federal employee health insurance premiums going up average of 7.9% in 2005