FERS vs CSRS COLA: how each works, and the 2027 COLA
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Published October 31, 2026 · By the OnPAR Federal Retirement Education editorial team · Last updated
Short answer: For the COLA effective December 1, 2026 (paid in the January 4, 2027 annuity payment), OPM says CSRS retirees get 3.6% and FERS retirees get 2.6%, for those who have received benefits for at least a year. Both come from the same inflation measure. The difference is the formula: CSRS passes through the full CPI increase, while FERS uses a reduced "diet COLA" formula and, for most regular retirees, starts only at age 62.
The 2027 COLA at a glance (OPM)
| CSRS | FERS | |
|---|---|---|
| COLA effective Dec 1, 2026 | 3.6% | 2.6% |
| First paid | January 4, 2027 | January 4, 2027 |
| Age requirement | None | Generally age 62 for regular retirees (exceptions below) |
| Applies to the FERS Supplement? | n/a | No, basic annuity only |
| Retired during the past year? | Prorated | Prorated |
Source: OPM Annuity Payments / Current COLA. OPM says the 3.6% figure comes from the percentage increase in the CPI for Urban Wage Earners and Clerical Workers (CPI-W) from the third-quarter average of 2025 to the third-quarter average of 2026, from the Bureau of Labor Statistics.
How each COLA is calculated
CSRS: the full CPI-W increase (3.6% this year).
FERS: under the FERS law, 5 U.S.C. 8462(b):
- If the CPI increase is 3% or less, FERS gets the lesser of the CPI increase or 2%.
- If the CPI increase is more than 3%, FERS gets the CPI increase minus 1 point.
This year the CPI increase was 3.6%, which is over 3%, so FERS gets 3.6 − 1 = 2.6%, exactly what OPM announced.
| CPI-W increase | CSRS COLA | FERS COLA |
|---|---|---|
| 2% or less | Same as CPI | Same as CPI |
| Over 2% up to 3% | Same as CPI | 2% |
| Over 3% | Same as CPI | CPI minus 1 point |
Who gets the FERS COLA before 62
OPM's BAL 26-101 says FERS COLAs generally don't apply to retirees under 62, except for survivor annuitants (spouse, former spouse, insurable interest), certain disability annuitants, law enforcement officers, firefighters and Capitol Police retiring under special provisions, air traffic controllers, certain military reserve technicians, and Joint Payroll Office FERS Special annuitants. CSRS COLAs apply regardless of age.
Retired in 2026? You get a partial COLA
To get the full COLA, your annuity must have begun no later than December 31, 2025, per OPM. If it started later, you get 1/12 of the COLA for each month you received benefits. See our prorated 2027 COLA table.
The minimum $1 rule
OPM's BAL 26-101 notes that the minimum COLA under CSRS and FERS is $1.00 a month, even if the percentage would round to less.
Have a CSRS component?
OPM says that under FERS, if you have a CSRS component, the component gets the CSRS COLA rules, while FERS survivors receive the FERS increase on the whole annuity. Check your annuity statement in OPM Retirement Services Online.
Education only, not financial advice. Sources: OPM Annuity Payments and COLA; OPM COLA FAQ; 5 U.S.C. 8462; OPM BAL 26-101.
Questions and answers
What is the 2027 COLA for FERS and CSRS?
OPM says the COLA effective December 1, 2026, payable January 4, 2027, is 3.6% for CSRS and 2.6% for FERS for those who have received benefits for at least one year.
Why is the FERS COLA lower than the CSRS COLA?
Under 5 U.S.C. 8462, if the CPI increase is 3% or less FERS gets the lesser of the CPI increase or 2%, and if it exceeds 3% FERS gets the CPI increase minus 1 point. CSRS gets the full CPI increase. This year the CPI increase was 3.6%, so FERS gets 2.6%.
Do FERS retirees under 62 get a COLA?
Generally no for regular retirees. OPM says exceptions include survivor annuitants, certain disability annuitants, and special-provision retirees such as law enforcement officers, firefighters and air traffic controllers.
Does the COLA apply to the FERS Supplement?
No. OPM says FERS COLA increases apply only to the retiree basic annuity, not the annuity supplement.