Right now, federal employees who have retired get yearly raises to their pensions to help keep up with inflation. However, there's a cap on how much that raise can be. If inflation goes up by 2% or less, retirees get the full amount. But if inflation jumps higher—say 4% or 5%—the government limits their raise to less than the actual inflation rate. This bill would change that system by giving federal retirees a raise equal to the full inflation rate, no matter how high it goes.

In practical terms, this means retired federal workers would see their pension checks increase by the same percentage that prices rise in the economy. If inflation hits 5%, they'd get a 5% raise instead of being capped at a lower amount. This would help retirees maintain their purchasing power during periods of high inflation, when their fixed income would otherwise fall further behind rising costs for groceries, housing, and other expenses. The change would apply to people receiving pensions through the Federal Employees Retirement System, which covers many government workers.

Equal COLA Act

Rep. Connolly, Gerald E. [D-VA-11]

Equal COLA ActThis bill applies a&nbsp;cost-of-living adjustment (COLA)&nbsp;for annuities paid under the Federal Employees Retirement System that is equal to the increase in inflation, regardless of the amount of&nbsp;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&nbsp;from the previous year.&nbsp;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.