On November 1, Sen. Alex Padilla (D-CA) reintroduced the Equal COLA Act (S. 3194), FMA-endorsed legislation that would bring equity to the way the cost-of-living-adjustment (COLA) is determined for all federal retirees. S. 3194 is companion legislation to H.R. 866, introduced in the House of Representatives earlier this year by Rep. Gerry Connolly (D-VA).

The bill would make the annual COLA for both the Civil Service Retirement System (CSRS) and the Federal Employee Retirement System (FERS) equivalent to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

FERS retirees’ COLAs are reduced under current law: When the CPI-W increase is 3 percent or greater, like the 8.7 percent in 2023, the FERS COLA is reduced by 1 percent. If the CPI-W is between 2 and 3 percent, FERS retirees see a 2 percent COLA, and when the CPI-W is less than 2 percent, the COLA is equal to the price index. The COLA for CSRS and Social Security recipients for 2024 will be 3.2 percent, so it will be 2.2 percent for FERS annuitants. S. 3194 would allow FERS employees to combat inflation and maintain the value of their annuities.

S. 3194 has five cosponsors – Sen. Chris Van Hollen (D-MD), Sen. Bernie Sanders (I-VT), Sen. Benjamin Cardin (D-MD), Sen. Patty Murray (D-WA), and Sen. Elizabeth Warren (D-MA) – and was referred to the Senate Homeland Security and Governmental Affairs Committee.

To track the progress of S. 3194, click here.