FERS COLA History Chart
Complete FERS COLA History (1987-2026)
The Federal Employees Retirement System (FERS) was established in 1987, replacing the Civil Service Retirement System (CSRS). Since its inception, FERS retirees have received annual Cost-of-Living Adjustments (COLA) based on a reduced formula compared to CSRS. This comprehensive history shows every COLA rate since FERS began.
Full Historical COLA Table
| Year | CPI-W Increase | FERS COLA | CSRS COLA | Difference |
|---|---|---|---|---|
| 2026 | TBD | TBD | TBD | - |
| 2025 | 2.8% | 2.0% | 2.8% | -0.8% |
| 2024 | 3.2% | 2.0% | 3.2% | -1.2% |
| 2023 | 8.7% | 7.7% | 8.7% | -1.0% |
| 2022 | 8.7% | 7.7% | 8.7% | -1.0% |
| 2021 | 1.3% | 1.3% | 1.3% | 0% |
| 2020 | 1.6% | 1.6% | 1.6% | 0% |
| 2019 | 1.6% | 1.6% | 1.6% | 0% |
| 2018 | 2.0% | 2.0% | 2.0% | 0% |
| 2017 | 0.3% | 0.3% | 0.3% | 0% |
| 2016 | 0.3% | 0.3% | 0.3% | 0% |
| 2015 | 0.0% | 0.0% | 0.0% | 0% |
| 2014 | 1.7% | 1.7% | 1.7% | 0% |
| 2013 | 1.5% | 1.5% | 1.5% | 0% |
| 2012 | 1.7% | 1.7% | 1.7% | 0% |
| 2011 | 3.6% | 2.0% | 3.6% | -1.6% |
| 2010 | 0.0% | 0.0% | 0.0% | 0% |
| 2009 | 0.0% | 0.0% | 0.0% | 0% |
| 2008 | 5.8% | 2.0% | 5.8% | -3.8% |
| 2007 | 4.1% | 2.0% | 4.1% | -2.1% |
| 2006 | 4.1% | 2.0% | 4.1% | -2.1% |
| 2005 | 4.1% | 2.0% | 4.1% | -2.1% |
| 2004 | 2.7% | 2.0% | 2.7% | -0.7% |
| 2003 | 2.1% | 2.0% | 2.1% | -0.1% |
| 2002 | 1.4% | 1.4% | 1.4% | 0% |
| 2001 | 2.6% | 2.0% | 2.6% | -0.6% |
| 2000 | 3.5% | 2.0% | 3.5% | -1.5% |
| 1999 | 2.5% | 2.0% | 2.5% | -0.5% |
| 1998 | 1.3% | 1.3% | 1.3% | 0% |
| 1997 | 2.9% | 2.0% | 2.9% | -0.9% |
| 1996 | 2.6% | 2.0% | 2.6% | -0.6% |
| 1995 | 2.8% | 2.0% | 2.8% | -0.8% |
| 1994 | 2.8% | 2.0% | 2.8% | -0.8% |
| 1993 | 3.0% | 2.0% | 3.0% | -1.0% |
| 1992 | 3.0% | 2.0% | 3.0% | -1.0% |
| 1991 | 5.4% | 2.0% | 5.4% | -3.4% |
| 1990 | 5.4% | 2.0% | 5.4% | -3.4% |
| 1989 | 4.7% | 2.0% | 4.7% | -2.7% |
| 1988 | 4.0% | 2.0% | 4.0% | -2.0% |
| 1987 | 4.4% | 2.0% | 4.4% | -2.4% |
Key Historical Trends
Average COLA Rates by Decade
| Period | Avg CPI-W | Avg FERS COLA | Years at 2% Cap |
|---|---|---|---|
| 2020-2026 | 3.5% | 2.9% | 3 of 7 |
| 2010-2019 | 1.5% | 1.5% | 0 of 10 |
| 2000-2009 | 3.2% | 1.9% | 7 of 10 |
| 1990-1999 | 3.4% | 2.0% | 8 of 10 |
| 1987-1989 | 4.7% | 2.0% | 3 of 3 |
Notable Observations
- Highest FERS COLA: 7.7% in 2022 and 2023 (during high inflation period)
- Lowest FERS COLA: 0.0% in 2010, 2015, and 2016 (during deflation or zero inflation)
- Most years at 2% cap: 1990s saw 8 out of 10 years capped at 2%
- Recent trend: 2020s have seen higher volatility with both 0% and 7.7% years
- Long-term average: FERS COLA has averaged approximately 2.1% since 1987
Important Context: The 2% cap applied in most years between 1987-2021 because inflation remained in the 2-8% range. Only during extreme inflation (2022-2023) did FERS COLA exceed 2% significantly.
Cumulative Impact Analysis
Understanding the cumulative effect of reduced FERS COLA over a typical retirement helps illustrate why this matters for long-term financial planning.
20-Year Retirement Scenario
Assume a retiree begins with a $30,000 annual pension in 1990. Here's how FERS vs CSRS pensions would compare after 20 years:
| Metric | FERS Pension | CSRS Pension | Difference |
|---|---|---|---|
| Starting Pension (1990) | $30,000 | $30,000 | $0 |
| Pension After 20 Years (2010) | $43,200 | $51,600 | -$8,400/year |
| Total Received Over 20 Years | $712,000 | $798,000 | -$86,000 |
| Purchasing Power (2010 dollars) | $32,400 | $38,700 | -16% |
Analysis: Over a 20-year retirement, the reduced FERS COLA results in approximately $86,000 less total income and 16% lower purchasing power compared to CSRS.