Federal retirees get a cost-of-living adjustment (COLA) in January 2027. Retirees under the Civil Service Retirement System (CSRS) get 3.6%. Most retirees under the Federal Employees Retirement System (FERS) get 2.6%. Here’s why the two differ and when the raise shows up.
Federal retiree COLA 2027 at a glance
| Retirement system | 2027 COLA |
|---|---|
| CSRS retirees and survivors | 3.6% |
| FERS retirees (age 62+), disability retirees and survivors | 2.6% |
| Social Security (for comparison) | 3.6% |
The COLA takes effect December 1, 2026, and first appears in the annuity payment made on Monday, January 4, 2027. January 1 is a holiday and January 2–3 fall on a weekend.
Why do FERS retirees get less?
FERS uses a “diet COLA” formula based on the same inflation measure as Social Security (CPI-W):
- If inflation is 2% or less, FERS retirees get the full amount.
- If inflation is between 2% and 3%, FERS retirees get 2%.
- If inflation is over 3%, FERS retirees get the inflation rate minus 1 percentage point.
Inflation for 2027 came in at 3.6%, so FERS retirees get 3.6% − 1% = 2.6%. CSRS retirees get the full 3.6%.
Who doesn’t get the FERS COLA?
FERS retirees under age 62 generally get no COLA on their annuity. These groups are the exceptions and do get it before 62:
- Disability retirees
- Survivor annuitants
- Special category retirees: law enforcement officers, firefighters, air traffic controllers and some others
The FERS annuity supplement (paid to some retirees before 62) doesn’t get a COLA.
Retired in 2026? Your first COLA is prorated
If your annuity started during 2026, your first COLA is reduced based on how many months you were retired before December 2026. Your full COLA starts the following year.
Example: what 3.6% and 2.6% mean
| Monthly annuity | CSRS (+3.6%) | FERS (+2.6%) |
|---|---|---|
| $2,000 | $2,072 | $2,052 |
| $3,000 | $3,108 | $3,078 |
| $4,000 | $4,144 | $4,104 |
Your net payment also depends on your Federal Employees Health Benefits (FEHB) premium for 2027 and on tax withholding.
Social Security and Medicare for federal retirees
Most FERS retirees also get Social Security, which rises by the full 3.6% in January. See Social Security COLA 2027 and the January 2027 payment dates. Medicare Part B premiums for 2027 are announced by CMS. We’ll update our coverage once they’re official.
Frequently asked questions
What’s the 2027 COLA for federal retirees?
3.6% for CSRS and 2.6% for most FERS retirees.
When will federal retirees see the COLA?
In the annuity payment dated January 4, 2027.
Do military retirees get 3.6%?
Most military retirees get a COLA equal to Social Security’s (3.6%). Those under the REDUX / Career Status Bonus plan get 1 percentage point less. Check with DFAS for your account.
Sources: OPM annuity COLA information (OPM Retirement Services), Federal News Network, SSA 2027 COLA Fact Sheet.
