GovernmentExecutive.com

Federal retirees under the Civil Service Retirement System will receive a 4.1 percent boost to their pensions in 2006, the largest hike in 14 years.

Federal officials unveiled the 2006 cost-of-living allowance Friday. It is based on the change in the Consumer Price Index for urban wage earners from the third-quarter of one year to the third-quarter of the next. The index is compiled by the Labor Department.

This year's 4.1 percent gain is the highest since 1991, when there was a 5.4 percent increase. In recent years, gains have been much lower. In 2005 the increase was 2.7 percent. In 2004 it was 2.1 percent, in 2003 it was 1.4 percent and in 2002 it was 2.6 percent.

The COLA will not be the same for retirees in the Federal Employees Retirement System. If the change in the CPI is more than 3 percent, FERS retirees get the COLA minus 1 percent. So FERS members will get 3.1 percent adjustments next year.

FERS retirees only get the cost-of-living allowance if they are 62 years of age or older.

CSRS annuitants must have been retired one full year to receive the full COLA. Newer retirees will receive prorated annuities, encompassing one-twelfth of the applicable increase for each month they've received their pension.

The 4.1 percent does not apply to current employees in the civil service. Employees are subject to a pay raise determined by Congress and approved by the president. Employees are on track to receive a 3.1 percent increase for 2006, including a 2.1 percent across-the-board increase and a 1 percent locality increase. The full Senate and President Bush have not yet approved that number, however.

Federal retirees will receive their first checks reflecting the increase in January 2006.

COMMENTS

• For all of you that continually whine about how overpaid the military is, note that the article only addresses civil service retirees. The military retiree gets a 1.5 percent COLA about every year and a half. That's it. No I'm not retired military -- I just think they're getting a raw deal since the retirement is based on base pay only, not what they were actually making. But many of you still think they're "overpaid" and "we should get the same raise" no matter what. But every percentage point we get is raise. It is only against the base pay for them. Each allowance is separate and none of them count towards their retirements. I constantly see people in here moaning over how the military has got it "so good" with all those allowances they don't pay taxes on, very few ever actually are in combat. You know the standard whines. But I work alongside a couple of retired sailors who have great stories of the hardships they put up with during careers -- months and months of separations, injuries at sea, shipmates that died in carrier accidents, but no "war stories" because they weren't facing bullets. One of them lost his entire family in a car accident while deployed and couldn't get back home in time for the funeral. But standing the watch for our collective freedom isn't enough for you, is it? Give it a rest. The two occupations are essentially different. If you want the same pay deal, then they should face the exact same issues -- being moved every few years whether you want to or not, forced separation from family, working odd hours (sometimes really great, other times life-leaching), forced attire that marks you in sometimes hostile crowds (remember the screams of "baby-killers!" that greeted Vietnam vets in their own country?), and the list could go on, but you get the drift. Thanks for letting me vent. Mich Again Posted October 25, 2005 7:47 AM
• As CSRS employees we were told during our retirement training that we would get the full CPI increase. Since the full CPI increase for this year is 4.7 percent, why are we only getting a 4.1 percent increase? Thanks. P.S. I retired Sept. 30, 2004 from NAVAIR chuck mead Posted October 18, 2005 5:53 PM