Equal COLA Act
Key claim: The Equal COLA Act would apply a full CPI-matching cost-of-living adjustment to Federal Employees Retirement System annuities in any year of inflation, eliminating current caps that limit COLAs when the CPI rises above 2%.
Abstract
(HR491 · 119th Congress) Equal COLA Act 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. Latest action (2025-09-16): 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.
Why this matters
For federal retirees under FERS, current statute caps annual COLAs below CPI whenever inflation exceeds 2%, causing purchasing power to erode faster than for CSRS retirees or Social Security beneficiaries who receive full CPI adjustments. The Equal COLA Act would equalize FERS treatment with those other systems, with fiscal implications for OPM’s retirement trust fund and long-term federal compensation costs.