The Federal Employees Retirement System (FERS) is a retirement savings and pension plan for federal employees and members of the uniformed services. FERS replaced the Civil Service Retirement System (CSRS) in 1987.
COLA stands for cost-of-living adjustment. COLAs are increases in the amount of certain benefits, such as Social Security and federal retirement benefits, to keep pace with inflation.
The 2025 Federal Retiree COLA (Cost-of-Living Adjustment) is an annual adjustment to the monthly annuity payments of federal retirees, based on the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Similar adjustments are made to Social Security benefits and military pensions. For 2025, the COLA is expected to be announced in October 2024 and will be effective for benefits paid in January 2025.
The COLA is an important benefit for federal retirees as it helps to ensure that their retirement income keeps pace with inflation and maintains its purchasing power. Over the long term, the COLA has helped to protect the retirement security of millions of federal employees and their families.
2025 military retiree pay raise refers to the scheduled increase in monthly pension payments for retired members of the U.S. military in 2025. The raise is part of an ongoing effort to ensure that military retirees maintain a standard of living comparable to their civilian counterparts.
The importance of the 2025 military retiree pay raise cannot be overstated. For many retirees, their pension is their primary source of income. A modest increase can make a significant difference in their ability to meet their financial obligations and maintain their quality of life.
