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H.R. 491 · House bill · 119th Congress
This 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.
This Act may be cited as the “Equal COLA Act”.
(a) In general.— Paragraph (1) of subsection (b) of section 8462 of title 5, United States Code, is amended to read as follows:
“(1) Except as provided in subsection (c), effective December 1 of each year, each annuity payable from the Fund having a commencing date not later than such December 1 shall be increased by the percent change in the price index for the base quarter of such year over the price index for the base quarter of the preceding year in which an adjustment under this subsection was made, adjusted to the nearest 1/10 of 1 percent.”.
(b) Application.— The amendment made by subsection (a) shall apply to—
(1) any cost-of-living adjustment under section 8462 of title 5, United States Code, made after the date of the enactment of this Act; and
(2) any annuity covered by such section commencing before, on, or after such date.