The 2025 COLA for federal retirees is an adjustment to the essential pay of federal retirees that’s made every year to maintain tempo with inflation. The COLA is calculated primarily based on the rise within the Shopper Value Index for City Wage Earners and Clerical Employees (CPI-W) from December of the earlier yr to December of the present yr. The COLA is then utilized to the retiree’s fundamental pay, which is the quantity of pay that the retiree was receiving on the time of their retirement.
The COLA is a crucial profit for federal retirees as a result of it helps to make sure that their retirement earnings retains tempo with the price of dwelling. The COLA has been in place since 1969, and it has helped to guard the retirement earnings of thousands and thousands of federal retirees.
