When will the official 2026 federal employee COLA be announced and by which agencies?
This fact-check may be outdated. Consider refreshing it to get the most current information.
Executive summary
The official 2026 retiree COLA was publicly announced in October 2025 and takes effect December 1, 2025 with higher annuity payments appearing in January 2026 for beneficiaries [1] [2] [3]. Operational implementation for federal pay adjustments and publishing of new pay tables is handled by the Office of Personnel Management (OPM), which issues guidance and updated pay tables to agencies for the January 2026 pay period [4] [5] [6].
1. How the announcement timing works: October announcement, December effective date, January payment
The long-standing sequence for federal retiree COLAs is that the adjustment percentage is announced in October, the COLA legally becomes effective December 1 of that year, and the adjusted monthly annuity payment appears in the beneficiary’s January check (the January payment is for the December benefit) — a timeline described by OPM and summarized by FedSmith and other federal benefits outlets [1] [3]. Multiple member organizations and retirement news services reported the 2026 COLA announcement in October 2025 and confirmed beneficiaries would see the increase reflected in January 2026 payments [2] [7].
2. Which agencies announce versus implement: BLS sets the index, Social Security/OPM announce and implement, agencies pay
The underlying inflation index used to calculate retiree COLAs is produced by the Bureau of Labor Statistics (BLS) — specifically the CPI-W used in COLA calculations — and is the statistical basis for the October count that determines the adjustment [8] [2]. Social Security and federal retirement authorities publish the numerical results to beneficiaries: Social Security notifies recipients about new benefit amounts beginning in early December and makes notices available online for my Social Security account holders [9]. For federal civilian pay tables and the mechanics of applying any pay adjustments, the Office of Personnel Management (OPM) publishes pay tables and guidance to agencies and coordinates implementation in payroll systems for the first pay period of January [4] [5] [6].
3. What was announced for 2026 and who is affected
Sources reporting the October 2025 announcement state the 2026 COLA for CSRS (Civil Service Retirement System) and Social Security was set at 2.8 percent and the FERS (Federal Employees Retirement System) retiree COLA at 2.0 percent, with those increases applicable to payments provided in January 2026 [2] [7] [3]. News outlets and unions echoed those figures and noted that FERS and CSRS rules can produce different practical effects on annuities depending on a retiree’s mix of service and special provisions [8] [10].
4. How OPM and agencies translate the COLA into paychecks for current employees
For active federal employees, the mechanics differ: OPM is responsible for publishing new pay tables and implementing any across-the-board adjustments or special pay authorities, and agencies apply those tables within their payroll systems so that changes take effect in the first pay period of January 2026 (some outlets cite January 11, 2026 as the first pay period when new tables apply) [4] [5] [6]. Reporting also highlights that administrative details — such as special-rate authority for certain occupations and locality pay freezes or adjustments — are coordinated by OPM with agencies and Office of Management and Budget (OMB) guidance [6].
5. Points of uncertainty and who to watch for official notices
While the October announcement sets the percentage, operational details such as the exact first pay period date for active employees, agency-specific special-rate coverage, and payroll timing are controlled by OPM and individual agency payroll offices; several outlets advised employees to monitor OPM.gov, agency payroll guidance, and Social Security notices for the definitive instructions and timing [11] [5]. Independent forecasts and projections from advocacy groups and newsletters had varied estimates earlier in 2025, but the official October announcement and subsequent OPM and Social Security notices are the authoritative actions that determine when benefits and pay reflect the 2026 COLA [12] [9].