Inflation is becoming a big issue for some federal retirees’ cost of living increases

When Congress created the Federal Employee Retirement System in the ‘80s, one of the most notable changes was that future retirees would get smaller cost of living adjustments than participants in the old Civil Service Retirement System. CSRS and Social Security beneficiaries get COLAs that match inflation; FERS retirees get a smaller adjustment. That hasn’t been a big deal over the past decade of low inflation, but obviously circumstances have changed. The National Active and Retired Federal Employees Association (NARFE) is urging Congress to pass the Equal COLA Act, which would get rid of the disparity between CSRS and FERS COLAs. To talk more about it, the Federal Drive was joined by John Hatton, Vice President for Policy and Programs at NARFE.