October brings news of the cost-of-living adjustment (COLA) for Social Security recipients and federal retirees. Surprisingly, not everyone on a government retirement gets the same COLA each year. The Social Security Administration has announced the COLA for 2024 will be 3.2 percent — quite a comedown from the 8.7 percent hike in 2023.
Federal employees who retired under the Civil Service Retirement System (CSRS) will get the full 3.2 percent increase. However, those who retired in the Federal Retirees Retirement System (FERS) will get one percent less (2.2 percent), which amounts on average to about $15.37 a month less than what those in the CSRS will get.
The discrepancy in the two systems relates to Congress deciding when the FERS was created in the 1980s. It was to balance out the fact that FERS employees were getting a government matching contribution of up to 5 percent in the Thrift Savings Plan, which CSRS employees were not. So CSRS employees were granted the full COLA.
Council of Seniors Wants Seniors to Get What They Deserve
Extra retirement income helps seniors cope with rising healthcare costs. That’s one reason why Council of Seniors believes Congress must pass The SAVE Benefits Act. Annual Social Security COLAs haven’t kept up with inflation. This resulted in $581 being withheld from seniors’ benefits. It’s time for that money to be returned with the passage of this bill.
Signing our petition is the first step to take to help. Let’s give Congress the wake-up call it needs about how many people want action on this bill now.
We’d love for you to connect with us on Facebook and Twitter!