The 2025 COLA for federal retirees is an adjustment to the fundamental pay of federal retirees that’s made every year to maintain tempo with inflation. The COLA is calculated based mostly on the rise within the Client 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 primary 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 tens of millions of federal retirees.
