FERS COLA 2027 calculator.

The 2027 federal retiree COLA in one line

SSA announced a 3.6% cost-of-living adjustment for benefits starting December 2026, based on the CPI-W. Federal annuities use the same index and the same base quarter (July through September), so the 3.6% is the starting point for both systems. CSRS annuities rise by the full percentage. FERS annuities rise by less when inflation is above 2%: 5 U.S.C. 8462 gives CPI minus 1 point when the CPI change is over 3%, so 3.6% becomes 2.6%. Both take effect December 1, 2026.

This is a derived figure. The 2.6% is our application of the statute to SSA's 3.6%. OPM sends each annuitant the binding notice, and its amount is the one that counts.

How the FERS percentage is set

Percentages are rounded to the nearest tenth of a percent. The new monthly annuity is rounded down to the next lowest dollar, but an increase is never less than $1 (both statutes).

Who gets the FERS COLA

Under 5 U.S.C. 8462(c)(3), a FERS adjustment does not apply to an annuitant who is under 62 on the date it would take effect. That limit covers annuities under sections 8412, 8413 and 8414, and the statute carves out the annuities under sections 8412(d)(1) and 8412(e) and a military reserve technician disability annuity under section 8414(c). Whether you fall in an exception depends on your retirement type, so check your annuity statement or ask OPM. Survivor annuities have their own rules in the same section. The calculator offers one switch: choose "No" only if you are a FERS retiree under 62 with no exception.

First-year retirees

If your annuity has not been adjusted before, the first increase is one-twelfth of the percentage for each month the annuity was payable before December 1, up to 12, rounded to the nearest tenth of a percent (5 U.S.C. 8340(c)(1) for CSRS, 8462(c)(1) for FERS). A FERS retiree on the roll for 6 months gets 6/12 of 2.6%, or 1.3%.

Worked examples

A FERS retiree aged 64 with a $2,500 monthly annuity: $2,500 × 1.026 = $2,565, an increase of $65 a month or $780 a year. A CSRS retiree with the same $2,500: $2,500 × 1.036 = $2,590, an increase of $90 a month. A FERS retiree who retired six months ago with $2,500: 1.3% gives $2,532.50, rounded down to $2,532. A FERS retiree aged 58 on an immediate annuity with no exception: no increase this December.

What this does not cover

• Your Social Security COLA, which has its own calculator, and Medicare Part B premium changes that offset it.
• Special rules for survivor annuities, the FERS annuity supplement and any disability annuity conversions.
• Tax withholding, FEHB premiums and other deductions, which change your take-home amount.

Sources

Retrieved 2026-11-01. Each page was opened and read against the claim next to it.

• 5 U.S.C. 8462, FERS cost-of-living adjustments: the 2% and 3% thresholds, the CPI minus 1 point rule, first-year proration, the age 62 limit and rounding.
• 5 U.S.C. 8340, CSRS cost-of-living adjustments: the full CPI percentage, first-year proration and rounding down to the next dollar.
• SSA, Cost-of-Living Adjustments: the latest COLA of 3.6% beginning with December 2026 benefits.
• OPM Retirement Center: where OPM publishes annuity notices and retiree information.