FERS Retirees Get a COLA Boost—But Not the One They Really Need

By Melinda Chase | October 26, 2025

Hey there, friend! Let’s talk about the 2026 COLA—yep, the Cost-of-Living Adjustment that helps your retirement benefits keep up with rising prices.

Here’s the real scoop: if you're retired under CSRS or collecting Social Security, your monthly check is going up by 2.8% starting next year. But if you're a FERS retiree, your increase is only 2.0%—even though prices are still climbing faster than that.

And that’s where the problem lies.

Wait, why do FERS retirees get less?

Great question! It’s because of a rule that was baked into FERS way back in the 1980s. If inflation (which is just a fancy word for how much prices go up) lands between 2% and 3%, FERS COLAs are capped at 2%. And if inflation is over 3%? FERS COLAs get shaved down by a whole percentage point.

Basically, it’s a “diet COLA.” 🍶 (Not the fun kind.)

And let’s be real: groceries, gas, and especially health insurance—they’re all getting more expensive. FERS retirees feel those rising costs just like everyone else. But under the current rules, their retirement checks don’t grow fast enough to keep up.

What’s being done about it?

There’s a bill in Congress called the Equal COLA Act (H.R. 491 / S. 624). If it passes, it would give FERS retirees the full COLA—just like CSRS folks get.

Right now, groups like NARFE (that’s the National Active and Retired Federal Employees Association) are pushing lawmakers to make it happen. Because let’s be honest: FERS retirees deserve the same protection for their hard-earned benefits.

And don’t forget those FEHB premiums…

Health insurance costs? Oof. Next year, the average premium for federal retirees is going up another 12.3%—on top of the 13.5% increase from this year. That’s a huge hit, especially for folks on a fixed income. So even with that 2.0% COLA, it might feel like your money’s stretching less in 2026, not more.

What can you do right now?

First, don’t panic—you’ve got options. If you're not sure how these changes will affect your personal retirement income or budget, let’s chat.

In my 12+ years helping federal employees and postal workers, I’ve seen how small changes can make a big difference—especially when it comes to planning around COLAs, health costs, and inflation.

We’ll go over your pension, TSP, FEHB, and more, and I’ll help you build a plan that feels safe, simple, and solid—even with COLA drama.

You don’t have to do this alone.
Book your free Discovery Call and let’s figure it out together.

Text me at 813-686-2208 or visit justcallmelinda.com. Let’s make sure your retirement plan supports not just your family’s future—but yours too.