Last updated October 19, 2026. We'll update this article as new decisions land.
Want to know what your 2027 COLA will do to your annuity? Here's the short version. The 2027 COLA for federal retirees is 3.6% for CSRS and 2.6% for FERS. Social Security and military retired pay get the full 3.6%.
That gap between CSRS and FERS surprises a lot of people. Let's break down why it happens, how much it means in dollars, and what to check before January.
What Is Final and What Is Not
Some parts of this story are settled. Others are still open.
Final:
- The Social Security Administration (SSA) announced the 2027 cost of living adjustment on October 14, 2026. It is 3.6%, based on third-quarter CPI-W.
- CSRS annuities, Social Security, and military retired pay get the full 3.6%.
- FERS annuities get 2.6%. That number comes from a formula, which we explain below.
- The COLA takes effect December 1, 2026.
Not final:
- The 2027 Medicare Part B premium. It hasn't been announced. It's expected in November.
- Your exact take-home change. That depends on your Part B deduction, taxes, and other withholding.
When the Part B number comes out, we'll update this page.
Background: How the 2027 Cost of Living Adjustment Works
A COLA is a yearly raise that helps your benefit keep up with rising prices. It isn't a performance raise. It's a price adjustment.
Where the 3.6% comes from
SSA looks at the CPI-W, a price index that tracks what urban wage earners and clerical workers pay. It compares the third quarter of this year to the third quarter of last year. The increase this time was 3.6%.
Why FERS gets less
FERS uses a rule people call the "diet COLA." It works like this:
- CPI-W up 3% or more: FERS gets the CPI-W increase minus one percentage point.
- CPI-W up 2% to 3%: FERS gets a flat 2%.
- CPI-W under 2%: FERS gets the full amount.
This year's increase was 3.6%. Subtract one point and you get the 2.6% FERS COLA for 2027. CSRS has no diet rule, so those retirees get all 3.6%.
Want a deeper look at how the two systems differ? Read our guide to CSRS vs FERS. For last year's side-by-side, see our 2026 COLA comparison for CSRS and FERS.
2027 CSRS COLA vs. 2027 FERS COLA: What It Means in Dollars
Percentages are hard to feel. Dollars are easier. All of these are example annuities, not anyone's real numbers.
| Annuity |
CSRS (3.6%) |
FERS (2.6%) |
| $30,000 |
+$1,080 a year ($90 a month) |
+$780 a year ($65 a month) |
| $50,000 |
+$1,800 a year ($150 a month) |
+$1,300 a year (about $108 a month) |
Step-by-step math
Here's how to do it yourself:
- Take your yearly annuity. Example: $50,000.
- Multiply by the COLA. For FERS: $50,000 × 0.026 = $1,300.
- Divide by 12 for the monthly raise: $1,300 ÷ 12 ≈ $108.
- Add it to your old annuity. Your new yearly annuity would be $51,300.
On a $50,000 annuity, the CSRS and FERS difference is $500 a year. That gap grows over time, because each year's COLA builds on the last.
When you'll see the money
The COLA starts December 1, 2026. OPM pays on the first business day of the month for the prior month. So the higher amount first shows up in your payment dated January 2027.
The easiest way to get your exact numbers is the federal retirement calculator. It's free, it's quick, and it saves you from doing the math by hand.
Who Gets the FERS COLA 2027, and Who Does Not
Here's where many FERS retirees get tripped up. The 2.6% doesn't reach everyone right away.
The age 62 rule
FERS retirees under age 62 generally don't get a COLA on their basic annuity. Once you hit 62, COLAs begin.
Who gets it early
Some groups get COLAs before 62:
- Special-provision retirees: law enforcement officers, firefighters, air traffic controllers, and military reserve technicians
- Disability retirees, after the first year
- Survivor annuitants
The supplement is different
If you get the FERS annuity supplement, know that it is not increased by COLA. Our Special Retirement Supplement calculator guide explains how it works.
First-year retirees get a partial COLA
If your annuity started this year, you get 1/12 of the COLA for each month you were on the rolls before December 1. We show an example below.
Practical Examples: Five Real-Life Situations
These use example numbers only.
1. The CSRS retiree with a $50,000 annuity.
The raise is $1,800 a year, or $150 a month. If you're enrolled in Medicare Part B, the premium is usually taken from your Social Security check. Part B can offset part of the COLA, so wait for the November announcement before you plan around that $150.
2. The FERS retiree, age 66, with a $50,000 annuity.
The raise is $1,300 a year, about $108 a month. Social Security also rises 3.6%. Our article on how Social Security and FERS work together shows how the two checks add up.
3. The new retiree.
Say your annuity started September 1 and you're on a $30,000 annuity. You were on the rolls for September, October, and November. That's 3 months, so you get 3/12 of the COLA.
- CSRS: $1,080 × 3/12 = $270 a year
- FERS: $780 × 3/12 = $195 a year
4. The FERS retiree, age 58, not special-provision.
You generally get no COLA on your basic annuity until you turn 62.
5. The military retiree.
Military retired pay gets the full 3.6%. For example, $36,000 of retired pay rises by $1,296 a year, or $108 a month. You can check your pay details at DFAS.
Common Mistakes and Misconceptions
"Everyone gets 3.6%." Not true. CSRS, Social Security, and military retired pay get 3.6%. FERS gets 2.6%.
"The diet COLA is a cut." It's not a cut. It's a smaller increase. Your annuity still goes up. The rule only applies when inflation is 3% or higher.
"My FERS raise starts at retirement." Often it doesn't. Most FERS retirees wait until 62.
"The supplement rises too." It doesn't.
"I'll see the full raise in my bank account." Maybe not. Part B, taxes, and insurance changes can all shrink the net. For tax details, see our guide to federal retirement tax planning and the IRS.
Step-by-Step: Get Ready for Your 2027 COLA
- Find your annuity amount. Check your latest OPM statement.
- Know your system. CSRS or FERS? That decides your percentage.
- Check your age and category. FERS under 62? Check whether you're special-provision, disability, or a survivor.
- Do the math. Multiply by 3.6% or 2.6%, or use the federal retirement calculator to see your exact numbers.
- Watch for the Part B announcement. It's expected in November. Learn more at CMS and in our guide on Medicare and FEHB in retirement.
- Review withholding. A higher annuity can change your taxes.
- Confirm with official sources. Check the SSA COLA page and the OPM COLA page. For news, try FedWeek and GovExec.
- Look for your January payment. Your new amount should show up in the payment dated January 2027.
Bottom Line
The 2027 COLA is 3.6% for CSRS, Social Security, and military retired pay, and 2.6% for FERS. The FERS number follows the diet COLA rule. Most FERS retirees under 62 won't see a COLA on their basic annuity yet.
On a $30,000 annuity, that's $90 a month for CSRS and $65 a month for FERS. The Part B premium, still unannounced, may take some of that back.
Don't guess at your own number. Try the federal retirement calculator to see your personal results. For more help, visit our pay info page.