Plain Language Summary
# Equal COLA Act Summary **What the bill does:** The Equal COLA Act would change how federal government employees' retirement benefits are adjusted each year to account for inflation. Currently, federal pensions receive cost-of-living adjustments (COLA) that are capped—meaning if inflation rises sharply, retirees don't get the full adjustment. This bill would remove those caps and give federal retirees a COLA that matches the actual inflation rate, no matter how high it goes. **Who it affects:** This bill primarily impacts current and future federal government retirees who receive pensions under the Federal Employees Retirement System (FERS).
For example, under current rules, if inflation jumps 5%, retirees only get a 4% raise; this bill would give them the full 5%. The change could also affect federal budgets since higher pension payments mean higher government costs. **Current status:** The bill is currently in committee, meaning it has been introduced but hasn't yet gone to a full vote in the House. It was sponsored by Representative Gerald Connolly (D-Virginia).
CRS Official Summary
Equal COLA ActThis bill applies a cost-of-living adjustment (COLA) for annuities paid under the Federal Employees Retirement System that is equal to the increase in inflation, regardless of the amount of the increase.Specifically, for any year in which the Consumer Price Index (CPI) has increased over the previous year, the COLA amount shall be increased by the change in the CPI from the previous year. Current law applies an adjustment equal to the change in CPI only if the change is 2% or less. If the change is between 2% and 3%, the adjustment is limited to 2%. If the change is more than 3%, the adjustment is limited to 1% less than the change.
Latest Action
ASSUMING FIRST SPONSORSHIP - Mr. Walkinshaw asked unanimous consent that he may hereafter be considered as the first sponsor of H.R. 491, a bill originally introduced by Representative Connolly, for the purpose of adding cosponsors and requesting reprintings pursuant to clause 7 of rule XII. Agreed to without objection.