Postal Retirees to Receive
2.7% Increase Next Year

APWU Web News Article #17-04, Oct. 25, 2004

Thanks to the largest annual COLA adjustment since 2001, postal workers covered by the Civil Service Retirement System will see a 2.7 percent increase in the size of their monthly checks in 2005.

Federal retiree COLAs are linked to the annual adjustment in Social Security benefits, which are going up by 2.7 percent next year. The Social Security Administration released its adjusted figure on Oct. 19.

In 2004, CSRS retirees received a 2.1 percent COLA.

Retired APWU members who retire under the Federal Employees Retirement System (FERS) and who are 62 or older will receive a 2 percent increase.

Congress created FERS in 1984 as part of its decision to make Social Security a part of federal employment, and to offer a 401(k)-type savings program to federal government workers. FERS retirees receive a civil service annuity as an adjunct to their Social Security.

[back to top]