White collar federal workers will not be getting a pay raise in January, 2012. If some people in Congress have their way there won’t be any federal pay raises for a long time.

But federal retirees (along with military retirees and folks under Social Security) are on track to get a cost of living adjustment in January. Right now the raise is just under 3.5 percent for CSRS retirees, and just under 2.5 percent for those under the FERS retirement program and, if living costs keep going up, the COLA will be even bigger. For more on how the process works and what has to happen next, click here

So if you are eligible to retire, tired of commuting and don’t know when you will get your next pay raise, why not retire at the end of the year and get that retiree COLA for 2012? In fact many workers have decided that is what they are going to do. Wait to the last minute, get that last paycheck, then transform from worker bee to retiree. Best of both worlds.

It is a great plan with one flaw. That flaw is..

You can’t do it.

Apparently you gotta be retired before you are eligible for a COLA intended for people who are retired.

Jim S., a plan-ahead guy asked the following question: “…if I was to retire this year would I get the COLA in January like all the rest do, or do I have to wait a year? And that leads to another question. In what month should a person retire to get the COLA?”

It’s a good question and I know I know the answer, but I never can remember what it is. So I asked David Snell who does know the answer. He’s Director of Retirement Benefit Services for the National Active and Retired Federal Employees Association. Here’s what he said:

“…Assuming the listener/reader is retiring under CSRS, since there is no COLA payment for a FERS retiree until age 62, if he retired this month (June) he would get 6/12th of any COLA payable in January 2012. To get the full COLA a CSRS retiree must be retired a whole year.”

For more on the COLA countdown go to www.narfe.org.

To reach me: mcausey@federalnewsradio.com

Nearly Useless Factoid
by Suzanne Kubota

The best place to take a nap is in a hammock.

MORE NEWS FROM FEDERAL NEWS RADIO

Five years running, agencies miss small business goal
Small businesses received almost $98 billion in government contracts in 2010, but agencies still missed the governmentwide goal

SES reforms moving too slowly, SEA says
The Obama administration’s initiatives to improve conditions for members of the Senior Executive Service (SES) have not been moving as successfully as they could, according to the Senior Executive Association.

Copyright © 2024 Federal News Network. All rights reserved. This website is not intended for users located within the European Economic Area.