Fed retirees get 2 percent COLA in 2018
- By FederalSoup Staff
- Oct 13, 2017
Federal retirees will get a 2 percent cost-of-living adjustment for 2018, which is in accordance with the latest consumer price data released by the Bureau of Labor Statistics.
However, with no and/or low COLAs given to retirees the last two years, National Active and Retired Federal Employees Association said the increase is not good enough, and further noted that Social Security needs to update its formula for calculating growing living expenses.
“Unfortunately, the 2.0 percent COLA provides only partial relief and serves as a reminder that our method for calculating the increasing cost of goods and services is out of sync with the reality faced by federal annuitants, Social Security recipients and military retirees," NARFE President Richard Thissen said in a statement.
“Our nation’s seniors spend more than twice as much on medical care than the population measured by the current formula to calculate COLAs, the CPI-W. Congress must act to implement a new formula that adequately measures costs incurred by seniors,” he added.
Thissen suggested that Congress require use of the Consumer Price Index for the elderly as the measurement for setting COLA.