For CSRS Retirees:
The 2016 CSRS retiree COLA is based on the third quarter (July, August, September) average CPI-W index in 2015 over the 2014 third quarter average. After the second quarter of 2015, the third quarter for the 2016 COLA adjustment period, the quarterly average is 0.6% below the third quarter of 2014; but is rising compared with quarter one of 2015.
For FERS Retirees:
The 2016 FERS retiree COLA is based on the third quarter (July, August, September) average CPI-W index in 2015 over the 2014 third quarter average. However, if the CPI-W quarterly average increases 3% or more, they subtract 1%. 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. After the second quarter of 2015, the third quarter for the 2016 COLA adjustment period, the quarterly average is 0.6% below the third quarter of 2014; but is rising compared with quarter one of 2015.
For Social Security Recipients:
The 2016 Social Security COLA is based on the third quarter (July, August, September) average CPI-W index in 2015 over the 2014 third quarter average. After the second quarter of 2015, the third quarter for the 2016 COLA adjustment period, the quarterly average is 0.6% below the third quarter of 2014; but is rising compared with quarter one of 2015.
Source: APWU