The Department of Labor released the data used to calculate the COLA for federal retirees.  The data translates to a 3.6 COLA for CSRS retirees and 2.6 percent for FERS retirees, who are 62 or older.  The COLA adjustment takes effect in December and will appear in January 2012 annuity checks.  FERS recipients also receive social security benefits which are slated to rise by 3.6 percent as well.  

            This adjustment is critical for federal retirees, especially because the two previous years did not result in any increase.  There is a slight chance that some in Congress could try to block the COLA, but NTEU will vehemently fight against that.  Our retired seniors have ever-increasing costs in many facets of life and deserve this COLA.

            As I have reported before, proposals to change the Department’s consumer price index (CPI) which is used to measure inflation and set COLAs, have also surfaced.  A proposal known as the “chained CPI” was considered by the Deficit Commission and promoted by others in Congress.  This would result in lower COLAs for retirees by instituting a new way of calculating spending habits without taking into consideration the increased medical costs of seniors.  NTEU will oppose the chained CPI which would only result in lower COLAs for our retirees. 

            While NTEU will remain vigilant on COLA issues, we are also working to prevent additional harmful measures that impact the current workforce.  We have fought to prevent additional pay freezes and reductions in benefits, and continue to fight for adequate agency budgets to enable federal employees to serve the public.  For further information and to see how you can help, you can you can visit www.capwiz.com/nteu.