Which federal programs use the 2025 COLA and how much did each increase?
Executive summary
The 2025 cost‑of‑living adjustment (COLA) increased most federal retirement and benefit programs, but the exact percentage varies by program: Social Security and Civil Service Retirement System (CSRS) annuities are reported at 2.5% while Federal Employees Retirement System (FERS) annuities were capped at 2.0% for 2025 [1] [2] [3]. Supplemental programs tied to the COLA — for example the maximum SSI monthly payments — were adjusted upward consistent with the 2.5% figure for 2025 [4].
1. Who gets the headline COLA and how much it was
Social Security beneficiaries and most federal annuitants under the Civil Service Retirement System (CSRS) saw the headline 2025 COLA of 2.5% applied to their benefits for payments beginning in January 2025 [2] [1]. The Social Security Administration and multiple federal benefit trackers use the CPI‑W third‑quarter comparison to set this number [5] [4].
2. The “diet” COLA for FERS: a built‑in cap and the resulting 2.0%
The Federal Employees Retirement System (FERS) does not automatically receive the full CPI‑W increase in every scenario; its formula caps increases when CPI‑W is between 2% and 3%, producing a 2.0% increase for FERS annuitants in 2025 — commonly called a “diet” COLA [1] [6]. Advocacy groups and unions have highlighted this disparity and pushed legislation to equalize COLAs between CSRS and FERS [6].
3. Other federal programs tied to the COLA: SSI and related figures
The Federal Register lists concrete program impacts from the 2.5% COLA for 2025: maximum Federal Supplemental Security Income (SSI) monthly payments were increased (for example, $967 for an eligible individual) and other statutory thresholds and bases tied to the COLA were adjusted [4]. Social Security’s public materials note the COLA methodology and its application to nearly 71 million beneficiaries when applicable [5].
4. Timing and how increases are applied
Where agencies follow the standard timing, COLAs announced for a year are applied to payments starting the next January (Social Security’s 2.8% example for 2026 shows that pattern); SSI payments sometimes see increases coincident with year‑end payments [5] [7]. For 2025, the Federal Register and SSA guidance make clear the COLA is implemented on the statutory schedule [4] [5].
5. Beyond annuities: FECA and other benefit exceptions
Not all programs follow the same CPI measurement or schedule. The Federal Employees’ Compensation Act (FECA) uses the CPI‑W as well but has its own timing; some reporting indicates FECA benefits adjusted by different percentages in some years [8] [9]. Available sources do not mention every smaller federal program individually; if you want a list of a specific program (for example, veterans’ pensions or certain agency‑administered need‑based payments) the current reporting set does not enumerate those details.
6. Why FERS differs: the statutory mechanics and politics
The FERS “diet” COLA results from statutory rules that reduce the FERS adjustment in certain CPI ranges; when overall CPI‑W is between 2% and 3%, FERS is limited to 2% [1]. Labor unions and groups like AFGE describe this as an unfair erosion of retiree purchasing power and are backing legislative fixes [6]. Opposing views — not detailed in these sources — would emphasize the budgetary and intergenerational tradeoffs of equalizing COLAs; available sources do not present a comprehensive defense by fiscal policymakers in this selection.
7. Numbers to watch and what advocates say next
Advocates cite specific dollar impacts: a modest COLA gap (for example, roughly $128 a year in one union’s calculation) can compound over time for FERS retirees — a talking point used to support bills such as the Equal COLA Act [6]. Legislative proposals and future CPI movements will determine whether these structural differences persist; current reporting shows active advocacy but no statutory change captured in these sources [6].
Limitations: This article relies solely on the supplied reporting. It does not claim to list every federal program affected (available sources do not mention each program individually) and does not include any agency releases after the dates in these sources. For program‑specific or account‑level impacts, consult the agency that administers your benefit.