FERS COLA 2027

CSRS retirees get the full CPI-W increase. FERS retirees get it under a three-band rule in 5 U.S.C. 8462(b):

2027 worked example: the CPI-W increase is 3.6%, which is above 3%, so the FERS COLA is 3.6% - 1.0 = 2.6%. A CSRS annuity of $3,000 a month rises to $3,108 and a FERS annuity of $3,000 rises to $3,078, a difference of $30 a month. OPM computes the new amount as the old amount times one plus the rate, rounded down to the dollar.

Under 5 U.S.C. 8462(c)(3), a FERS COLA does not take effect for an annuitant who is under 62 on the date the adjustment would first take effect, December 1, 2026. To get the 2027 FERS COLA you generally need to be 62 on or before December 1, 2026. OPM's Benefits Administration Letter lists these exceptions:

• Spouse, former spouse, and insurable interest survivor annuitants.
• Disability annuitants (5 U.S.C. 8462(c)(3)). Those paid at the 60% first-year rate get no COLA that year.
• Retirees under 5 U.S.C. 8412(d)(1) or (e): law enforcement officer, member of the Capitol Police or Supreme Court Police, firefighter, nuclear materials courier, customs and border protection officer, or air traffic controller (5 U.S.C. 8462(c)(3)(B)(ii)).
• Military reserve technicians who retired at age 50 with 25 years because they lost military membership to disability.
• Joint Payroll Office FERS Special annuitants.

If you retired under FERS before 62 and are not in an exception, your first COLA comes after you turn 62. If you had been retired at least a year by then, OPM says the first COLA is the full rate rather than a prorated one. A FERS retiree with a CSRS component gets the CSRS COLA on that component at any age.

The FERS annuity supplement, paid to many retirees who retire before 62 until they can claim Social Security, does not receive a COLA. OPM states that FERS COLAs apply to the retiree's basic annuity only, not the annuity supplement. Your 2027 increase applies to the basic annuity once you are eligible.

Expected, not confirmed: expected — DFAS has not posted its 2027 notice as of October 23, 2026. Military retired pay is adjusted every December 1 by a CPI increase under 10 U.S.C. 1401a. We expect it to match the 3.6% Social Security COLA, which would be 3.6% for High-3 and Final Pay retirees and for Blended Retirement System participants.

• REDUX and Career Status Bonus: members who first joined on or after August 1, 1986 and took the bonus get the increase minus 1 percentage point when it is above 1%: an expected 2.6% in 2027. See DFAS on CSB/REDUX.
• Retired during 2026: the first adjustment is the CPI increase from the quarter before the quarter you retired to the third quarter of 2026 (10 U.S.C. 1401a(d)). DFAS computes it, and the calculator does not estimate it. Members who retired by December 31, 2025 would get the full-year rate.
• Payment: DFAS pays retired pay on the first of the month. Because January 1, 2027 is a federal holiday, the first deposit at the new rate is expected on December 31, 2026. Not yet confirmed by DFAS. Check your DFAS statement.

Pay for serving members is separate; see the 2027 military pay chart. VA disability compensation gets its own COLA: see 2027 VA disability rates.

• OPM (CSRS and FERS): effective December 1, 2026, reflected in the benefit payable January 4, 2027 (OPM pays on the first business day of the month after the benefit accrues).
• Military retired pay (DFAS): effective December 1, 2026; the first increased payment is expected December 31, 2026. Not yet confirmed by DFAS in our check.
• Social Security: see the 2027 Social Security COLA page, the source of the 3.6% increase.

FEHB and Medicare premiums are deducted from your annuity after the COLA. OPM's 2027 open season highlights report that the average enrollee share of FEHB premiums rises 10.9% in 2027 (overall premiums up 9.3%). Open Season runs November 9 to December 14, 2026. Your own plan's change is in its rate chart on OPM's premiums page. For Part B, see the 2027 Medicare Part B premium page. Federal employees who are still working should see the 2027 federal pay raise page.