NARFE is urging federal employees and retirees to contact Congress and ask lawmakers to cosponsor the Equal COLA Act (H.R. 491 / S. 624), legislation aimed at providing full cost-of-living adjustments (COLAs) to Federal Employees Retirement System (FERS) retirees. NARFE says the change would help preserve the purchasing power of FERS annuities over time.
- Bill numbers: Equal COLA Act — H.R. 491 in the House and S. 624 in the Senate
- What it would do: Provide full COLAs for FERS retirees, aligning FERS COLA treatment more closely with the full COLAs received by CSRS retirees, according to NARFE
- Why NARFE is pushing it: NARFE says current FERS COLA rules can reduce annual increases compared with inflation measures used for COLAs, which can compound over a long retirement
- Who is affected: Current and future FERS retirees (and employees planning for retirement under FERS)
- Action requested: NARFE is asking constituents to contact their House member and Senators to request cosponsorship of H.R. 491 / S. 624
Under current law, FERS COLAs generally do not provide a full inflation match in years when inflation is higher. NARFE argues that this structure can erode annuity value over time, particularly for retirees facing rising costs for essentials such as housing, food, and health care. The association is framing the Equal COLA Act as a targeted fix to strengthen retirement security for the FERS population.
For employees still working, the issue is also a planning factor: smaller COLAs can materially change the long-term value of a pension over a multi-decade retirement. If you’re estimating how post-retirement income could hold up under different COLA scenarios, you can run your own numbers using the FERS retirement calculator.
NARFE’s call to action focuses on building cosponsorship for the House and Senate bills. Cosponsorship does not guarantee a vote, but it is a key early indicator of support and can influence whether leadership advances a bill through committee and onto the floor.
Source: NARFE News