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  2. 1.3%
    • According to 2 sources
    In 2021, federal retirees can expect a COLA of 1.3%. This is determined by an automatic formula and was announced in October. The federal pay raise, however, is determined by a political process by Congress and the president.
    Many people who receive monthly payments from the Civil Service Retirement System (CSRS) or the Federal Employees Retirement System (FERS) will receive a cost-of-living adjustment (COLA) effective December 1, 2020. The increase is paid in their January 2021 annuity payment. The maximum increase is 1.3% for CSRS.
     
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    What is the 2021 Cola and how does it work?This increase will also go into effect in January. The 2021 COLA will be 1.3% for Civil Service Retirement System (CSRS) annuities and Social Security benefits. It will also be 1.3% for Federal Employees Retirement System (FERS) retirees. Calculating government benefits always seems complicated.
    What does the 2021 Cola adjustment mean for retirees?It’s not a raise in the usual sense as it is designed to keep up with the rate of inflation for the increasing cost of goods and services. But, while it is not a raise in the usual sense, it still means more money for retirees and can play an important part in their finances. The 2021 COLA adjustment will be 1.3%.
    How much Cola do federal employees get?Depending on the system under which a federal employee retires, though, the exact COLA amount will vary. Those on the Civil Service Retirement System (CSRS) receive the full COLA , while FERS retirees usually receive less. Exactly how much less depends on the size of the COLA itself:
    Will federal employees get a pay raise in 2021?2020 has been an unusual year, so it is not a surprise that the road to arriving at the 2021 pay raise for federal employees also took some unusual twists and turns. The bottom line, however, is that federal employees will receive a 1% across the board pay raise in 2021. There is no extra amount allocated for locality pay.
     
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