Last verified: October 17, 2026, against the sources linked below. Written by Casey Steward.
On October 14, 2026, the Social Security Administration announced a 3.6% cost-of-living adjustment (COLA) for 2027 (SSA). The same inflation number drives federal annuities, but not the same raise. CSRS retirees get the full 3.6%. FERS retirees get 2.6%, and many FERS retirees under 62 get nothing at all. Here’s who gets what, why, and when it shows up.
The short version
- Social Security and CSRS: 3.6%. The third-quarter CPI-W averaged 328.746 in 2026 versus 317.265 in 2025, a 3.6% rise (SSA).
- FERS: 2.6%. When inflation tops 3%, FERS annuities get the CPI increase minus one point. That’s the “diet COLA” in 5 U.S.C. 8462.
- Regular FERS retirees under 62 get no COLA. That includes MRA+10 and deferred retirees. Disability retirees (after the first year), survivors, and special-provision retirees (law enforcement, firefighters, air traffic controllers) are the exceptions.
- The FERS supplement never gets a COLA.
- Timing: effective December 1, 2026, so it first appears in the annuity payment OPM makes in early January 2027.
- Retired during 2026? Your first COLA is prorated: one-twelfth for each month your annuity was payable before December 1.
What each group gets
| Who | 2027 COLA | Notes |
|---|---|---|
| Social Security beneficiaries | 3.6% | Starts with benefits payable in January 2027 |
| CSRS annuitants | 3.6% | Any age; prorated if retired in the past year |
| FERS annuitants 62 and older | 2.6% | Diet COLA; prorated if retired in the past year |
| FERS regular retirees under 62 (including MRA+10 and deferred) | None | COLAs start once you turn 62 |
| FERS special-provision retirees (LEO, FF, ATC, etc.) | 2.6% | Any age |
| FERS disability retirees | 2.6% | Not while paid at 60% of high-3 (generally the first 12 months) |
| FERS survivor annuitants | 2.6% | Any age |
| FERS annuity supplement | None | Never adjusted for inflation |
| CSRS component of a FERS annuity | 3.6% | CSRS rules apply to that portion |
Sources: 5 U.S.C. 8462; 5 U.S.C. 8340; 5 U.S.C. 8421; OPM COLA FAQ.
Why FERS gets less: the diet COLA
CSRS was designed as a stand-alone pension, so it tracks inflation fully. FERS was built in 1986 as three pieces (annuity, Social Security, TSP), and Congress decided the annuity part didn’t need full inflation protection. The result is a sliding scale in 5 U.S.C. 8462(b):
| CPI-W increase | FERS COLA | Example |
|---|---|---|
| 2.0% or less | The full CPI increase | CPI 1.5% → 1.5% |
| More than 2.0%, up to 3.0% | 2.0% | CPI 2.8% → 2.0% |
| More than 3.0% | CPI minus 1 point | CPI 3.6% → 2.6% (2027) |
In low-inflation years nobody notices. In years like this one, FERS loses a full point, and those points compound. Your Social Security, by contrast, gets the full 3.6%, which is the main inflation protection the FERS design assumes you have.
No COLA before 62 (for most)
Under 5 U.S.C. 8462(c)(3), a COLA doesn’t apply to a FERS annuitant under 62 who retired under the regular immediate, MRA+10, or deferred rules. If you turn 62 during the year, COLAs start with the next December adjustment after that birthday, but the ones you missed are not added back. (Survivors are handled differently: a survivor annuity picks up the increases the deceased retiree’s annuity received.)
That matters for anyone retiring at their MRA. Take a GS-13 step 5 ($120,629) who retires at 57 with a $38,601 annuity. That annuity stays at $38,601 for five years. At 2.5% inflation, it buys about 12% less by 62 than it did on day one. A deferred annuity is worse off: it’s frozen from the day you leave until 62.
The exceptions, per OPM: special-provision retirees (law enforcement officers, firefighters, air traffic controllers, and others retiring under 5 U.S.C. 8412(d)(1) or (e)), disability retirees (except while the annuity is computed at 60% of high-3), and survivor annuitants.
The FERS supplement gets no COLA
If you retired on an immediate unreduced annuity before 62, you may get the FERS annuity supplement, which approximates your Social Security from federal service until 62. It’s paid as a flat amount with no COLA, even for special-provision retirees whose annuity is adjusted (5 U.S.C. 8421). It also goes through an earnings test after your MRA.
When it shows up
Federal COLAs take effect December 1. OPM pays each month’s annuity on the first business day of the next month, so the December 2026 annuity, the first one with the COLA, is paid in early January 2027. Social Security works the same way: the COLA starts with December benefits, payable in January 2027 (SSA). After the COLA, OPM rounds the new monthly amount down to the whole dollar.
Worked example: a $38,601 FERS annuity
Take a FERS retiree who’s 62 or older and was on the rolls for all 12 months, with a gross annuity of $38,601 a year. OPM pays monthly, so the starting monthly amount is $38,601 ÷ 12 = $3,216.75, rounded down to $3,216.
- FERS (2.6%): $3,216 × 1.026 = $3,299.62 → $3,299 a month, or $39,588 a year. That’s $83 more a month.
- Same annuity under CSRS (3.6%): $3,216 × 1.036 = $3,331.78 → $3,331 a month, $39,972 a year.
- Same annuity, regular FERS retiree aged 58: $3,216 a month, unchanged.
This is the gross figure. Your net check also depends on FEHB premiums, tax withholding, and any survivor-benefit reduction, so it may rise by more or less than $83. FEHB premiums for 2027 are in our open season checklist. To estimate your own annuity, try the FERS pension calculation guide or our calculators.
Retired in 2026? Your first COLA is prorated
Your first increase is one-twelfth of the COLA for each month your annuity was payable before December 1, 2026, counting any part of a month as a full month and rounding to the nearest tenth of a percent (5 U.S.C. 8462(c)(1)). For FERS, you also have to be COLA-eligible (62+ or one of the exceptions above).
| Annuity start date | Months before Dec 1 | FERS (if eligible) | CSRS |
|---|---|---|---|
| On or before Dec 1, 2025 | 12 | 2.6% | 3.6% |
| June 1, 2026 | 6 | 1.3% | 1.8% |
| October 1, 2026 | 2 | 0.4% | 0.6% |
| December 1, 2026 or later | 0 | None until December 2027 | None until December 2027 |
If you retire December 31, 2026, your annuity starts January 1, 2027, so your first COLA (if you’re eligible) arrives in January 2028, prorated by months. That’s a good reason not to plan your retirement date around this year’s COLA.
FAQ
Is the 2027 FERS COLA 2.6% or 3.6%? 2.6% for eligible FERS annuities. 3.6% applies to CSRS, to the CSRS component of a FERS annuity, and to Social Security.
I’m 59 and retired at my MRA. Do I get anything? Not on the annuity or the supplement. COLAs start with the first December adjustment after you turn 62.
Do the COLAs I missed before 62 get added back? No. For retirees, there’s no catch-up. (Survivor annuities do pick up the increases the retiree’s annuity received.)
Does my FERS supplement go up? No. It’s never adjusted for inflation.
Do I need to do anything? No. OPM applies it automatically and posts it in Retirement Services Online.
What about Medicare Part B? CMS hadn’t announced 2027 premiums when we checked. We’ll add them once they’re official.
Sources
- SSA, Social Security Announces 3.6 Percent Benefit Increase for 2027 (Oct. 14, 2026); SSA, Latest Cost-of-Living Adjustment
- 5 U.S.C. 8462 (FERS COLAs); 5 U.S.C. 8340 (CSRS COLAs); 5 U.S.C. 8421 (annuity supplement)
- OPM, How is the COLA determined?
- Examples: The High Three’s own calculations.
Educational only, not financial advice. The High Three is an independent publication. It is not affiliated with, endorsed by, or sponsored by the U.S. Office of Personnel Management (OPM), the Federal Retirement Thrift Investment Board, the Thrift Savings Plan (TSP), the IRS, or any government agency. Verify details with official sources and your agency HR office before making decisions.