The following is a question submitted by a Federal Times readers about retirement and other issues facing the federal workforce. It is answered by Reg Jones, a charter member of the senior executive service and a Federal Times columnist since 1995.
Question: I am 63 years old and retired under FERS immediate retirement effective Nov 1, 2022. Will I receive a COLA increase on my FERS pension in January of 2023 and, if so, will it be prorated?
Right now my impression is that I will not receive any FERS COLA increase at all until January 2024. If that IS the case, will I just completely lose out on the current 7.7% FERS COLA increase or would it be built in at any future point?
I did think that I would receive my SSA COLA of 8.7% but now I’ve confused myself and am not sure I’ll receive that either.
Reg’s Response: Your impression is correct. You’ll lose out on the 2023 COLA. That because COLAs, like pay checks, are payable at the end of the period in which they are earned. Because you’ll be on the annuity roll in December 2022, you’ll be entitled to a full COLA in your January 2024 annuity check.
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Reg Jones is the resident expert on retirement and the federal government at Federal Times. From 1979 until 1995, he served as an assistant director of the U.S. Office of Personnel Management handling recruiting and examining, white and blue collar pay, retirement, insurance and other issues. Opinions expressed are his own.
Reg Jones, a charter member of the senior executive service, is our resident expert on retirement and the federal government. From 1979 to '95, he served as an assistant director of the Office of Personnel Management handling recruiting and examining, white and blue collar pay, retirement, insurance and other issues. Opinions expressed are his own.
