HOW THE COLA IS CALCULATED

The 2021 FERS retiree COLA is based on the third quarter (July, August, September) average CPI-W index (1982-84=100) in 2020 over the 2019 third quarter average.

However, if the CPI-W quarterly average increases 3% or more, they subtract 1%. For example, a 5% increase in the quarterly CPI-W average results in a 4% adjustment. If the quarterly average increases from 2% to 3%, benefits increase by 2%. A CPI-W quarterly average increase of 2% or less will increase benefits by the change in the CPI-W quarterly average.

PAST FERS COLA ADJUSTMENTS

Year	FERS COLA
2021	1.3%
2020	1.6%
2019	2%
2018	2%
2017	0.30%
2016	0%
2015	1.70%
2014	1.50%
2013	1.70%
2012	2.60%
2011	0.00%
2010	0.00%
2009	4.80%
2008	2.00%
2007	2.30%
2006	3.10%
2005	2.00%
2004	2.00%
2003	1.40%
2002	2.00%
2001	2.50%
2000	2.00%
1999	1.30%
1998	2.00%
1997	2.00%
1996	2.00%
1995	2.00%

Related: Social Security Announces 1.3 Percent Benefit Increase for 2021

Source: American Postal Workers Union