2023-11-09 23:58:27
The Social Security Cost of Living Adjustment (COLA) is taken into account to provide an increase in the benefits they receive month to month. This average is calculated from the Consumer Price Index for Salaried Workers, but Many experts have indicated that this should not be the way it is done. Therefore, there is a new proposal that seeks to increase the COLA, although it would not benefit everyone.
The main proposal focuses on increasing the COLA for those who are retired federal employees under the Federal Employees Retirement System (FERS) in some cases, according to FedSmith.com.
The proposal has received the name of the Equal COLA Act (S.3194) and was introduced by Senator Alex Padilla (D-Calif.), which is an addition to legislation introduced by Representative Gerry Connolly (D-Va.). Although this legislative proposal is currently being seen, it is not the first time that something of this type has been presented.
Although still in talks, if authorized, it would modify current law on ensuring that federal retirees under the Federal Employees Retirement System (FERS) always get the same COLA as federal employees retired under the Federal Employees Retirement System (FERS). Civil Service (CSRS).
“Federal retirees who have served our country should receive the full benefit adjustment each year that is consistent with national economic trends. The Equal COLA Act will ensure that the nearly 800,000 federal retirees living on fixed incomes receive all the benefits they deserve to keep up with the cost of living,” Padilla said.
“This two-tier system does not protect FERS retirees who live on a fixed income. “This legislation will rectify this unfair system and ensure these dedicated public servants are protected in their retirement,” Connolly explained.
The current status of FERS retirees generally receive a lower COLA than their retired CSRS counterparts. The reason is that the COLA is calculated differently.
Meanwhile, Social Security announced that the COLA for 2024 will be 3.2%, a much lower figure than the one approved for 2023, which exceeded 8%. All these increases will come into effect from 2024.
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