COLA Count Still in Deep Freeze

Through three months of the count toward the January 2011 federal retirement COLA, the count remains negative at -1.8 percent, following a drop in December of 0.1 percentage points in the indicator used to set the COLA. Even though the indicator has been positive for two of the three months, the overall count is negative because the starting point used is the average of the third quarter of 2008 rather than that of 2009, under a law that keeps the same starting point when there are no COLAs for a year due to negative inflation, such as occurred in the count to determine the January 2010 adjustment. The December figure also set the COLA to be paid in April under the FECA injury compensation system, which uses a calendar year basis, at 3.4 percent. FECA beneficiaries received no COLA in April 2009.

 

Back | Published: September 8, 2010