2022 COLA 5.9% for CSRS Social Security Benefits; 4.9% for FERS

Social Security and Civil Service Retirement System (CSRS) annuity checks will increase by 5.9 percent in January, while Federal Employees Retirement System (FERS) annuity checks will rise by 4.9 percent. This increase comes as a result of the 2022 cost-of-living adjustment (COLA) announced in October 2021.

The COLA is calculated by comparing the change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from year to year, based on the average of the third-quarter months of July, August and September. The September 2021 increase in the CPI-W was 6.19 percent, which, when added with the July and August numbers, averaged to a 5.9 percent increase over those three months compared with the three-month average in 2020.

The CPI-W is based on data collected from 75 urban areas and roughly 23,000 retail and service establishments. Some of the goods tracked include food and beverage, housing, clothing, transportation, medical care, recreation, education and communication. This year saw a major economic upturn as prices bounced back from a downturn in 2020. Many states experienced renewed economic activity as they began to reopen and resume business, spurred by a drop in COVID-19 cases and increase in vaccinations heading into summer 2021.

The 2022 COLA is the largest increase in nearly 40 years. “Coming after years of low or no adjustments, this 5.9 percent COLA provides a buffer for seniors against recent inflation. With prices increasing significantly over the last year, the announcement highlights the value of tying the COLA directly to annual inflation by law. A statutory COLA provides reliable protection against loss of purchasing power,” NARFE National President Ken Thomas said after the announcement.

It is important to note that the COLA for FERS retirees is unfairly reduced by 1 percentage point when the CPI-W increase is 3 percent or more, as in this year. As a result, FERS retirees will only receive a 4.9 percent increase in their federal annuities. FERS COLAs are also capped at 2 percent when consumer prices increase between 2 and 3 percent. When the consumer price increase is under 2 percent, the FERS COLA matches the price index.

NARFE supports the Equal COLA Act, H.R. 304, which would address this inequity by providing FERS retirees with the same annual adjustment as CSRS retirees. If Congress fails to act, FERS retirees will continue to see their annuities, earned through committed service to the American people, decrease in value year after year—exactly what COLAs are intended to prevent. Please contact your members of Congress by dialing 1-800456-8410 and selecting option 5, and ask for their support of H.R. 304. You can also send a message to your legislators through the Legislative Action Center on the NARFE website at www.narfe.org/advocacy.

NARFE tracks the change in the CPI-W each month and lists updates on its website and in NARFE Magazine so members can stay in the know. Visit www. narfe.org/cola to see how the CPI-W is tracking towards your next COLA.

—BY SETH ICKES, GRASSROOTS ASSISTANT

program and said he is working with OPM on the details.

Ahuja stated that “too many underserved communities have been underrepresented in the federal government.” She reminded the students that this summer, President Biden issued an executive order focused on diversity, equity, inclusion and accessibility in the federal government. She described this order as “the most expansive effort that has happened in the federal government on these issues.”

The event also heavily focused on how to use telework to the federal government’s advantage. While admittedly skeptical at first, Ahuja now sees telework as a recruitment tool. “We are hearing from our employees that they do not necessarily want to be in the office every day. For us to stay competitive, we need to lean into that a lot more.” Ahuja went on to describe the current limitations in the law for telework and how OPM would “need to work through [it] to make it more expansive.” Connolly was the author of the Telework Enhancement Act, which was signed into law in 2010.

He now sees that bill as something to build on as the federal government leans into telework.

—BY JOHN ROBERT AYERS, POLICY AND PROGRAMS ASSISTANT

THE NARFE BILL TRACKER IS YOUR MONTHLY GUIDE TO LEGISLATION NARFE IS FOLLOWING. CHECK BACK EACH ISSUE FOR UPDATES.

H.R. 3076/S. 1720: The Postal Service Reform Act / Rep. Carolyn Maloney, D-NY / Sen. Gary Peters, D-MI Cosponsors: H.R. 3076: 53 (D) 39 (R) S. 1720: 14 (D) 12 (R) 1(I)

H.R. 695/S. 145: USPS Fairness Act / Rep. Peter DeFazio, D-OR / Sen. Steve Daines, R-MT

Cosponsors: H.R. 695: 218 (D) 59 (R) S. 145: 5 (D) 5 (R) H.R. 304: The Equal COLA Act / Rep. Gerry Connolly, D-VA Cosponsors: H.R. 304: 24 (D) 3 (R)

H.R. 4315: The Fair COLA for Seniors Act / Rep. John Garamendi, D-CA

Cosponsors: H.R. 4315: 41 (D) 1 (R)

Creates a new Postal Service Health Benefits (PSHB) program starting in January 2023. All postal employees and retirees would be moved to the new PSHB program, except Medicareeligible postal retirees who do not enroll in Medicare. Because retirees without Medicare tend to cost more to insure, this bill risks increasing premiums for federal employees and retirees enrolled in Federal Employees Health Benefits (FEHB) program plans.

Repeals the U.S. Postal Service’s prefunding requirement.

Provides Federal Employees Retirement System (FERS) retirees with the same annual cost-of-living adjustment (COLA) as Civil Service Retirement System (CSRS) retirees. Advanced from the House Committee on Oversight and Reform by voice vote (H.R. 3076) / Referred to the Senate Committee on Homeland Security and Governmental Affairs (S. 1720)

Referred to the House Committee on Oversight and Reform (H.R. 695) / Referred to the Senate Committee on Homeland Security and Governmental Affairs (S. 145)

Referred to the House Committee on Oversight and Reform

Requires Social Security and federal retirement programs to use the Consumer Price Index for the Elderly (CPI-E) to calculate cost-of-living adjustments (COLAs) to retirement benefits. Referred to the House Committees on Ways and Means, Veterans’ Affairs, Oversight and Reform, and Armed Services

H.R. 4268: Federal Retirement Fairness Act / Rep. Derek Kilmer, D-WA

Cosponsors: H.R. 4268: 12 (D) 10 (R) Allows federal employees who started their careers in temporary positions before transitioning into permanent roles to retroactively contribute toward their retirement for the years they held a temporary position. Referred to the House Committee on Oversight and Reform

H.R. 51/S. 51 Washington D.C. Admission Act / Del. Eleanor Holmes Norton, D-DC / Sen. Thomas Carper, D-DE Cosponsors: H.R. 51: 216 (D) 0 (R) S. 51: 44 (D) 0 (R) 1 (I) Provides for the admission of the State of Washington, DC, into the Union. Passed the House on April 22, 2021, by a vote of 216-208 / Referred to the Senate Committee on Homeland Security and Governmental Affairs (S. 51)

H.Res. 131/S.Res. 76: Resolution Celebrating NARFE’s Centennial / Rep. Gerry Connolly, D-VA / Sen. Ben Cardin, D-MD

Cosponsors: H.Res. 131: 15 (D) 4 (R) S.Res. 76: 3 (D) 2 (R) Congratulates NARFE on the celebration of its 100th anniversary on February 19, 2021, and recognizes the vital contributions its members have made to the United States during the past 100 years. Referred to the House Committee on Oversight and Reform (H.Res. 131) / Agreed to in the Senate by unanimous consent on February 25, 2021 (S.Res. 76)

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THE NARFE BILL TRACKER IS YOUR MONTHLY GUIDE TO LEGISLATION NARFE IS FOLLOWING. CHECK BACK EACH ISSUE FOR UPDATES.

H.R. 302: Preventing a Patronage System Act / Rep. Gerry Connolly, D-VA Cosponsors: H.R. 302: 9 (D) 3 (R) Requires presidential administrations to obtain the agreement of Congress to reclassify competitive service positions outside of merit system principles. Advanced from the House Committee on Oversight and Reform in a 22-18 vote

H.R. 392/S. 561: The Federal Adjustment of Income Rates (FAIR) Act / Rep. Gerry Connolly, D-VA / Sen. Brian Schatz, D-HI

Cosponsors: H.R. 392: 59 (D) 1 (R) S. 561: 12 (D) 0 (R) 1 (I)

Comprehensive Paid Leave for Federal Employees Act / Rep. Carolyn Maloney, D-NY / Sen. Brian Schatz, D-HI

Cosponsors: H.R. 564: 33 (D) 0 (R) S. 1158: 4 (D) 0 (R) Provides federal employees with a 3.2 percent average pay raise in 2022. Referred to the House Committee on Oversight and Reform (H.R. 392) / Referred to the Senate Committee on Homeland Security and Governmental Affairs (S. 561)

Extends paid leave to federal and postal employees for all conditions covered by the Family and Medical Leave Act (FMLA). Approved by the House Committee on Oversight and Reform (H.R. 564) / Referred to the Senate Committee on Homeland Security and Governmental Affairs (S. 1158)

H.R. 82/S. 1302: The Social Security Fairness Act / Rep. Rodney Davis, R-IL / Sen. Sherrod Brown, D-OH

Cosponsors: H.R. 82: 180 (D) 57 (R) S. 1302: 30 (D) 4 (R) 2 (I)

H.R. 2337: The Public Servants Protection and Fairness Act / Rep. Richard Neal, D-MA Cosponsors: H.R. 2337: 183 (D) 0 (R) Repeals both the Government Pension Offset (GPO) and Windfall Elimination Provision (WEP). Referred to the House Committee on Ways and Means (H.R. 82) / Referred to Senate Committee on Finance (S. 1302)

Reforms the Windfall Elimination Provision (WEP) by providing a monthly rebate of $150 to current beneficiaries (age 62 or older before 2023) and creating a new formula to calculate benefits for future WEP-affected individuals (turning 62 in or after 2023). Referred to the House Committee on Ways and Means

H.R. 4788: Well-Being for Every Public Servant Act of 2021 / Rep. Julia Letlow, R-LA

Cosponsors: H.R. 4788: 0 Fully repeals the Windfall Elimination Provision for individuals whose combined monthly income from their non-Social Security covered government annuity and Social Security benefits is $5,500 or lower, with graduated implementation on benefits above that amount. Referred to the House Committee on Ways and Means

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1 The Service Benefit Plan will pay a hearing aid benefit for Standard and Basic Options up to $2,500 total every 5 calendar years for adults age 22 and over, and up to $2,500 total per calendar year for members up to age 22. FEP Blue Focus does not have a hearing aid benefit. Do not rely on this communication piece alone for complete benefit information. All benefits are subject to the definitions, limitations, and exclusions in the Blue Cross and Blue Shield Service Benefit Plan brochure. The Blue365® Discount Program offers access to savings on items that you may purchase directly from independent vendors, which may be different from items covered under the Service Benefit Plan or any other applicable federal healthcare program. For hearing aids, acupuncture, chiropractic and vision services, you must exhaust your Service Benefit Plan benefit first before accessing the savings of the Blue365® Discount Program. To find out what is covered under your policy, contact the customer service number on the back of your member ID card. The products and services described herein are neither offered nor guaranteed under any local Blue company’s contract with the Medicare program. These items are not subject to the Medicare appeal process. Any disputes regarding these products and services are not subject to the Disputed Claims process. Blue Cross Blue Shield Association (BCBSA) may receive payments from Blue365 vendors. Neither the Service Benefit Plan, nor any local Blue company recommends, endorses, warrants or guarantees any specific Blue365 vendor or item. The Service Benefit Plan reserves the right to change, modify, or terminate any item and vendors made available through Blue365, at any time.

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2 Price shown does not include cost of comprehensive hearing exam. Examination and testing for prescribing of hearing aids is covered under the Service Benefit Plan. The member should confirm that the provider rendering the hearing exam is a Preferred provider. If the provider is Non-preferred, the member may be charged a maximum fee of $45 for the exam, and the member may need to submit a claim for reimbursement. Must be a Service Benefit

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All content ©2021 TruHearing, Inc. All Rights Reserved. TruHearing® is a registered trademark of TruHearing, Inc. All other trademarks, product names, and company names are the property of their respective owners. Listed benefit amount may differ from customer's actual benefit. Actual customer payment will vary. Follow-up provider visits included for one year following hearing aid purchase. Hearing aid repairs, and replacements subject to provider and manufacturer fees. For questions regarding fees, contact TruHearing customer service.

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