Federal

Equal COLA Act

Source: Congress.gov · 388 words in original text

What This Bill Does

This bill changes how the Federal Employees Retirement System calculates cost-of-living adjustments, which are annual increases to retirement payments based on inflation. The bill aims to make these adjustments equal to those given under the Civil Service Retirement System.

Who It Affects

Federal employees who receive retirement payments (annuities) under the Federal Employees Retirement System.

Key Provisions

• Each year starting December 1, the government will increase retirement payments by the percentage change in prices from the previous year, rounded to the nearest one-tenth of 1 percent (Sec. 2(a)). • This change applies to any cost-of-living adjustment made after the bill becomes law (Sec. 2(b)). • The change applies to retirement payments that started before, on, or after the bill becomes law (Sec. 2(b)).

What Changes

If this becomes law, federal employees who receive retirement payments will have their annual increases calculated based on price changes year to year. The bill changes the existing rule for how much their payments go up each December 1.

Important Definitions

• Annuity: a regular payment made to someone who has retired • Cost-of-living adjustment: an increase to payments based on changes in prices • Price index: a measure of how prices change over time

Effective Date

Adjustments apply to any cost-of-living adjustment made after the date the bill becomes law.

I 118TH CONGRESS 1ST SESSION H. R. 866 To amend title 5, United States Code, to achieve parity between the cost- of-living adjustment with respect to an annuity under the Federal Em- ployees Retirement System and an annuity under the Civil Service Retire- ment System, and for other purposes. IN THE HOUSE OF REPRESENTATIVES FEBRUARY 8, 2023 Mr. CONNOLLY (for himself and Ms. SPANBERGER) introduced the following bill; which was referred to the Committee on Oversight and Accountability A BILL To amend title 5, United States Code, to achieve parity between the cost-of-living adjustment with respect to an annuity under the Federal Employees Retirement System and an annuity under the Civil Service Retirement Sys- tem, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Equal COLA Act’’. 4 VerDate Sep 11 2014 00:20 Mar 02, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H866.IH H866 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •HR 866 IH SEC. 2. INCREASE IN COLA FOR FERS ANNUITIES. 1 (a) IN GENERAL.—Paragraph (1) of subsection (b) 2 of section 8462 of title 5, United States Code, is amended 3 to read as follows: 4 ‘‘(1) Except as provided in subsection (c), effective 5 December 1 of each year, each annuity payable from the 6 Fund having a commencing date not later than such De- 7 cember 1 shall be increased by the percent change in the 8 price index for the base quarter of such year over the price 9 index for the base quarter of the preceding year in which 10 an adjustment under this subsection was made, adjusted 11 to the nearest 1⁄10 of 1 percent.’’. 12 (b) APPLICATION.—The amendment made by sub- 13 section (a) shall apply to— 14 (1) any cost-of-living adjustment under section 15 8462 of title 5, United States Code, made after the 16 date of the enactment of this Act; and 17 (2) any annuity covered by such section com- 18 mencing before, on, or after such date. 19 Æ VerDate Sep 11 2014 00:20 Mar 02, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\H866.IH H866 pbinns on DSKJLVW7X2PROD with $$_JOB

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