Sun Oct 26 04:40:00 UTC 2025: Summary:

Federal retirees and Social Security recipients will see a 2.8% cost-of-living adjustment (COLA) in their benefits starting January 2026. However, Federal Employees Retirement System (FERS) retirees will receive a reduced 2% COLA. The Social Security Administration’s announcement was delayed due to the government shutdown. While the COLA aims to help retirees keep pace with inflation, concerns are raised that it doesn’t fully cover rising health insurance premiums for federal employees.

News Article:

Federal Retirees to See 2.8% COLA in 2026, FERS Retirees Receive Lower Adjustment

Washington, D.C. – Millions of federal retirees and Social Security recipients will receive a 2.8% cost-of-living adjustment (COLA) to their benefits beginning in January 2026, the Social Security Administration announced today. This increase aims to help retirees keep pace with rising inflation.

However, not all federal retirees will see the full benefit. Those enrolled in the Federal Employees Retirement System (FERS) will receive a reduced “diet” COLA of 2%. This adjustment is calculated based on specific parameters within the FERS system.

The announcement, originally scheduled for last week, was delayed due to the recent government shutdown. The increase will add approximately $56 per month to Social Security retirement benefits.

“Social Security is a promise kept, and the annual cost-of-living adjustment is one way we are working to make sure benefits reflect today’s economic realities and continue to provide a foundation of security,” said SSA Commissioner Frank Bisignano in a statement.

The National Active and Retired Federal Employees Association (NARFE) expressed concerns that the COLA doesn’t adequately address rising healthcare costs. According to NARFE, health insurance premiums for federal employees and annuitants are expected to increase by more than 12% next year.

While the 2026 COLA is higher than last year, the annual adjustments have varied significantly in recent years. The 2023 COLA reached a high of 8.7%, while the 2024 adjustment was 3.2%. Due to existing caps on those adjustments, FERS retirees received a 7.7% COLA in 2023 and a 2.2% COLA in 2024.

The COLA increase affects approximately 75 million Americans, including retirees and individuals with disabilities who receive Social Security benefits.

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