Federal retirees now know how much their annuities will go up next year, and as usual, not everyone gets the same raise.
Following Social Security’s announcement of a 3.6% cost-of-living adjustment on October 14, retirees under the Civil Service Retirement System (CSRS) will get the full 3.6%. Most retirees under the Federal Employees Retirement System (FERS) will get 2.6%, and some won’t get an increase at all.
Here’s who gets what, when the money shows up, and what could eat into it.
Who gets what
| If you’re… | 2027 COLA |
|---|---|
| A CSRS or CSRS Offset retiree (any age) | 3.6% |
| A FERS retiree aged 62 or older | 2.6% |
| A FERS disability retiree (any age) | 2.6% |
| A FERS survivor annuitant (any age) | 2.6% |
| A FERS special provision retiree, such as law enforcement, firefighters or air traffic controllers (any age) | 2.6% |
| A regular FERS retiree under 62 | No COLA until you turn 62 |
| Getting the FERS annuity supplement | No COLA on the supplement, ever |
Why FERS gets less: The FERS rule, sometimes called the “diet COLA,” works like this. When the Social Security COLA is above 3%, FERS retirees get one percentage point less. When it’s between 2% and 3%, they get 2%. Only when it’s 2% or below do they get the full amount. With this year’s COLA at 3.6%, that means 2.6% for FERS.
Retired in 2026? If your annuity started partway through this year, you’ll generally get a prorated, smaller increase this time.
When you’ll see it
The COLA takes effect on December 1, 2026. But because federal annuities are paid after the month they cover, the first bigger payment arrives in January 2027. Social Security beneficiaries also see their higher amount in January.
What it looks like in dollars
Before any deductions, here’s roughly what the increase adds each month:
| Monthly amount now | CSRS (3.6%) | FERS (2.6%) |
|---|---|---|
| $1,500 | +$54 | +$39 |
| $2,000 | +$72 | +$52 |
| $3,000 | +$108 | +$78 |
| $4,000 | +$144 | +$104 |
If you also get Social Security, that rises by the full 3.6%. According to SSA, the average retired worker will see about $75 more a month.
What could shrink your raise
The percentage is only part of the story. Three things can take a bite out of what actually lands in your bank account:
- Medicare Part B. If your Part B premium comes out of your Social Security, a premium increase reduces your net raise. The 2027 premium hasn’t been announced yet. The standard premium is $202.90 a month in 2026, and early projections put it at about $209.50 for 2027.
- FEHB premiums. Federal Employees Health Benefits premiums change with the new plan year, and those come out of your annuity. Open Season is the time to compare plans.
- Tax withholding. A bigger annuity can change how much federal tax should be withheld. It’s worth reviewing your withholding (Form W-4P) so you don’t end up owing at tax time.
How to check your new amount
- Federal annuity: Log in to OPM’s Retirement Services Online account. Your annuity statement and annual summary will show the new amount.
- Social Security: Your COLA notice will be in your my Social Security Message Center from late November. To get it online instead of by mail, sign up for paperless notices by November 18. Otherwise, a paper notice arrives in December.
One tip: after the 2026 COLA, NARFE reported that some December statements showed the January payment amount. Compare your statement with what actually lands in your bank account, and report anything that doesn’t match.
Could FERS retirees get the full COLA?
A bill called the Equal COLA Act would remove the one-point FERS reduction and give FERS retirees the same COLA as CSRS. It hasn’t passed, so the reduced 2.6% applies for 2027.
Watch out for scams
Scammers often take advantage of COLA season with texts, emails and calls about your “new benefit amount,” sometimes asking you to click a link or confirm personal details. Don’t. Go directly to ssa.gov or OPM’s official website instead.
Sources: My Federal Retirement, “2027 COLA: What Federal Retirees Can Expect and When” (October 19, 2026) and the Social Security Administration.
Jackson is a dedicated USA news writer, who covers important topics such as Social Security payment schedules, COLA increases, IRS tax refunds, stimulus payment announcements, Medicare eligibility, retirement benefits, and changes to state driving laws. His goal is to provide clear, informative, and easy-to-follow articles that help retirees, seniors, taxpayers, and American families stay informed.