The Social Security Administration (SSA) announced that the 2027 cost-of-living adjustment (COLA) is 3.6% for Social Security beneficiaries and Civil Service Retirement System (CSRS) retirees. Federal Employees Retirement System (FERS) retirees age 62 and older receive 2.6% because of the FERS reduction formula. The increase takes effect December 1, 2026, and first appears in January 2027 payments.
The running estimate stood at 3.3% after the July and August inflation data. The September Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) of 330.654 raised the final figure to 3.6%. The 2027 COLA is larger than the 2.8% adjustment that took effect in January 2026, which was 2.0% for FERS retirees age 62 and older.
Use the COLA calculator below to see the increase to a specific annuity, including the effect of Medicare Part B and Federal Employees Health Benefits (FEHB) premium changes.
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COLA History: CSRS vs. FERS, 2019 to 2027
The table shows how the FERS reduction has played out year by year. A gap appears whenever the Social Security and CSRS COLA is above 2%.
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| Year | Social Security and CSRS COLA | FERS COLA | Gap (percentage points) |
|---|---|---|---|
| 2019 | 2.8% | 2.0% | 0.8 |
| 2020 | 1.6% | 1.6% | 0.0 |
| 2021 | 1.3% | 1.3% | 0.0 |
| 2022 | 5.9% | 4.9% | 1.0 |
| 2023 | 8.7% | 7.7% | 1.0 |
| 2024 | 3.2% | 2.2% | 1.0 |
| 2025 | 2.5% | 2.0% | 0.5 |
| 2026 | 2.8% | 2.0% | 0.8 |
| 2027 | 3.6% | 2.6% | 1.0 |
Compounded, the 2019 through 2027 adjustments add up to about 37.2% for CSRS and Social Security and about 29.4% for FERS, a difference of roughly 7.8 percentage points. Each year is the January payment year, and the FERS figures apply to retirees who qualify for a COLA. The full federal retiree COLA history goes back further.
Do FERS retirees under 62 receive the 2027 COLA?
Generally no. Most FERS retirees do not receive an annuity COLA until age 62. Disability retirees, survivor annuitants and special provision retirees, such as law enforcement officers, firefighters and air traffic controllers, receive the FERS COLA regardless of age. The Office of Personnel Management publishes the official rules.
When does the 2027 COLA take effect?
The increase takes effect December 1, 2026. Annuities are paid after the month ends, so the first higher CSRS or FERS payment arrives in January 2027. Social Security beneficiaries also see the higher amount in January, and SSA typically mails notices in December.
Why is the FERS COLA 1 percentage point lower than the CSRS COLA?
The FERS formula caps the COLA when inflation is above 2%. When the Social Security COLA is above 3%, as it is for 2027, FERS retirees receive that COLA minus 1 percentage point. That makes 3.6% minus 1.0% equal to 2.6%. The federal retiree COLA guide explains the formula in more detail.
Will a higher Medicare Part B premium reduce the 2027 COLA?
For many retirees, part of it. The standard Part B premium usually rises at the same time and is deducted from the Social Security benefit. A 3.6% COLA on a $2,075 monthly benefit adds about $75, and a $6.60 Part B increase would reduce the net gain to roughly $68. The Centers for Medicare & Medicaid Services usually announces the official 2027 premium in November. See the Medicare premiums page for current figures.
Is there a proposal to give FERS retirees the full COLA?
Yes. The Equal COLA Act would eliminate the FERS reduction and give FERS retirees the same COLA as CSRS retirees and Social Security beneficiaries. The reduction still applies to the 2027 COLA.