Key Takeaways
- The 2027 FERS COLA is 2.6%; CSRS retirees and Social Security beneficiaries get 3.6%.
- FERS gets the COLA minus one point whenever it tops 3%, and caps at 2% between 2% and 3%.
- Most FERS retirees under 62 get no COLA; disability, survivor and special-provision retirees do.
- The first increased annuity payment arrives January 4, 2027.
The 2027 COLA for FERS retirees is 2.6%. CSRS retirees and Social Security beneficiaries get the full 3.6%, which SSA announced on October 14, 2026.
That one-point gap isn’t a mistake. It’s written into the FERS law, and it kicks in every time the COLA comes in above 3%. The raise starts with the annuity payment for December 2026, which OPM deposits on Monday, January 4, 2027.
2027 Federal Retiree COLA at a Glance
| Who | 2027 COLA |
|---|---|
| CSRS annuitants | 3.6% |
| FERS annuitants (age 62+, disability, survivors) | 2.6% |
| Most FERS retirees under 62 | None until 62 |
| FERS Special Retirement Supplement | None |
| Social Security | 3.6% |
OPM applies the COLA to annuities that were in effect for the full year. If you retired during 2026, your first COLA is prorated by the number of months you were retired.
How the FERS “Diet COLA” Works
CSRS annuities and Social Security get whatever the CPI-W produces, full stop. FERS uses a three-tier formula instead:
- COLA of 2% or less: FERS gets the full amount.
- COLA between 2% and 3%: FERS is capped at exactly 2%.
- COLA above 3%: FERS gets the COLA minus one point.
At 3.6%, that third rule applies, so 3.6% minus 1 is 2.6%. In 2026, when the COLA was 2.8%, FERS retirees got the 2% cap.
The Dollar Gap in 2027
On an identical annuity, the one-point difference is real money:
| Monthly annuity | FERS raise (2.6%) | CSRS raise (3.6%) | Gap per year |
|---|---|---|---|
| $1,500 | +$39 | +$54 | $180 |
| $2,500 | +$65 | +$90 | $300 |
| $4,000 | +$104 | +$144 | $480 |
Robert, a retired FERS postal worker with a $2,800 annuity, gets about $73 more a month in 2027. Diane, a CSRS retiree with the same $2,800 annuity, gets about $101 more.
The $28 a month gap is easy to shrug off. But it compounds, because every future COLA builds on a smaller base. Over a 25-year retirement, that’s thousands of dollars.
FERS Has Trailed Every Year Since 2022
This is the sixth straight year FERS retirees have gotten less than CSRS and Social Security.
| Year | Social Security and CSRS | FERS |
|---|---|---|
| 2027 | 3.6% | 2.6% |
| 2026 | 2.8% | 2.0% |
| 2025 | 2.5% | 2.0% |
| 2024 | 3.2% | 2.2% |
| 2023 | 8.7% | 7.7% |
| 2022 | 5.9% | 4.9% |
Compounded, a FERS annuity that matched a CSRS annuity in 2021 is now about 5% smaller. On a $2,500 starting annuity, that’s roughly $160 a month. If your annuity feels like it keeps falling behind, this formula is a big part of why.
Who Doesn’t Get a COLA Until 62
Most FERS retirees under age 62 get no COLA on their annuity, regardless of what inflation does. The 2.6% applies once you turn 62.
The exceptions get the COLA before 62:
- Disability retirees
- Survivor annuitants
- Special-provision retirees, such as law enforcement officers, firefighters and air traffic controllers
The FERS Special Retirement Supplement never gets a COLA. If you retired early with the supplement, that piece of your check stays flat until it ends at 62.
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Planning Around the Smaller Raise
You can’t change the formula, but you can stop being surprised by it.
Budget with your own number. Multiply your gross FERS annuity by 2.6%, not the 3.6% in the headlines. Your health premiums and tax withholding come out after that, so your net raise will be smaller still.
Track your two raises separately. If you also get Social Security, that check rises the full 3.6% in January, while your annuity rises 2.6%. My 2027 Social Security COLA breakdown has what that means in dollars, including the Medicare Part B math.
Check your system if you’re unsure. CSRS Offset employees, who had both CSRS and Social Security coverage, get the full CSRS COLA on their annuity. If you’re not sure which system you’re in, your retirement paperwork or OPM can confirm it.
Think long term. A retiree at 62 should treat this as a recurring gap in FERS income growth, which makes Social Security timing and TSP withdrawals matter more. My guide to key retirement ages for 401(k), IRA and Social Security lays out those milestones, and my pension annuity vs lump sum post covers how inflation protection changes that choice.
Active employees face their own squeeze: most civilian GS workers are looking at a 2027 pay freeze. My 2027 GS pay chart and raise post tracks whether Congress overrides it.
What 2028 Could Look Like for FERS
The 2028 COLA will be announced in mid-October 2027, based on CPI-W for July through September 2027. No one has a reliable forecast yet.
The FERS formula is what makes 2028 interesting. If inflation cools and the COLA lands anywhere between 2% and 3%, FERS retirees get exactly 2%, while CSRS gets the full amount. Only a COLA above 3% or below 2% changes that.
The other thing I’m watching is Congress. Bills to give FERS retirees the full COLA, such as the Equal COLA Act, have been introduced before without advancing. I wouldn’t plan around a change, but I’ll note it here if one moves.
FERS COLA Mix-Ups I See Every Year
Expecting the raise on January 1. OPM pays on the first business day, and New Year’s weekend pushes the first 2027 payment to January 4.
Using the 3.6% headline. It doesn’t apply to FERS annuities above the 3% line. Your number is 2.6%.
Forgetting the under-62 rule. If you retired early on a regular FERS annuity, you get no COLA at all until 62.
Expecting a full COLA in your first year. If you retired partway through 2026, your first increase is prorated.
Watching for COLA scams. Calls and texts asking you to “verify” your annuity for the raise are fake. COLAs are automatic; check your amount only through OPM Retirement Services Online. My write-up on the fake Social Security call transfer scam shows how these scripts work.
