Equal COLA Act
- Bill Number
- H.R. 491
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Government Operations and Politics
- Status
- Introduced
- 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.
- Last Updated
- 2026-07-10T08:06:18Z
AI-Generated Summary
Summary of H.R. 491: Equal COLA Act
Purpose
The legislation aims to create equal treatment in cost-of-living adjustments (COLAs) for retirement annuities under the Federal Employees Retirement System (FERS) and the Civil Service Retirement System (CSRS). Currently, FERS annuities receive reduced COLAs during periods of high inflation, while CSRS annuities do not. This bill eliminates that difference to ensure fairness for federal retirees.
Key Provisions
- Amendment to COLA Formula: The bill revises Section 8462(b)(1) of Title 5, United States Code, which governs FERS annuities. It replaces the existing language with a standard COLA increase based on the percentage change in the Consumer Price Index (CPI) for the base quarter of the current year compared to the prior year when an adjustment was last made. The increase is rounded to the nearest one-tenth of one percent.
- Effective Date and Scope: The change applies to all COLA adjustments made after the bill's enactment. It covers any FERS annuity that began before, on, or after the enactment date.
- Exceptions: Adjustments remain subject to limitations in subsection (c) of the same section, which may include rules for certain early retirees or other specific cases.
Significant Changes to Existing Law
- Under current law, FERS COLAs are capped: if the CPI increase exceeds 3%, the adjustment is reduced by subtracting 1% from the excess over 3%. For example, a 4% CPI rise results in a 2% COLA for FERS, while CSRS gets the full 4%.
- This bill removes the FERS-specific reduction, aligning its COLA calculation directly with the CSRS formula. This parity applies starting with the first COLA after enactment, potentially increasing future adjustments for FERS retirees during inflationary periods.
Potential Impacts
- On Government Agencies: The Office of Personnel Management (OPM) and the Treasury Department will face higher costs due to increased annuity payments. This could strain federal retirement funds, requiring additional budgetary allocations from Congress.
- On Citizens: Federal retirees and survivors under FERS (millions of individuals) will benefit from fuller protection against inflation, improving their financial security in retirement. Active federal employees may see enhanced retirement incentives.
- On International Relations: No direct impacts, as the bill focuses solely on domestic federal retirement benefits.
Main Stakeholders Affected
- Primary Beneficiaries: Retirees, survivors, and disabled former employees under FERS, who currently number over 2.5 million and will receive larger COLAs.
- Government Entities: OPM (administers benefits), Congress (oversees funding), and federal agencies employing workers who contribute to these systems.
- Secondary Groups: Taxpayers, as increased costs may influence federal spending priorities; CSRS retirees (already at full COLA) who supported the bill for equity.
Notable Legal, Constitutional, or Political Implications
- Legal: The amendment is straightforward and builds on existing retirement statutes without altering eligibility or contribution rules. It promotes equity under federal employment law but may require OPM to update regulations for implementation.
- Constitutional: No apparent challenges; it aligns with Congress's authority to regulate federal employee benefits under Article I.
- Political: Introduced with bipartisan support (e.g., sponsors from both parties), the bill addresses long-standing complaints about FERS disparities created in 1987. Passage could signal congressional commitment to federal worker welfare but might face opposition over added costs amid budget debates. If enacted, it sets a precedent for future retirement equity reforms.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Connolly, Gerald E. [D-VA-11]
Cosponsors (85)
Rep. Mullin, Kevin [D-CA-15], Rep. Tlaib, Rashida [D-MI-12], Rep. Brownley, Julia [D-CA-26], Rep. Boyle, Brendan F. [D-PA-2], Rep. Cleaver, Emanuel [D-MO-5], Rep. Davis, Donald G. [D-NC-1], Rep. McBath, Lucy [D-GA-6], Rep. DelBene, Suzan K. [D-WA-1], Rep. Frost, Maxwell [D-FL-10], Rep. Cohen, Steve [D-TN-9], Rep. Leger Fernandez, Teresa [D-NM-3], Rep. Mrvan, Frank J. [D-IN-1], Rep. Thanedar, Shri [D-MI-13], Rep. Titus, Dina [D-NV-1], Rep. Cherfilus-McCormick, Sheila [D-FL-20], Rep. Raskin, Jamie [D-MD-8], Rep. McClellan, Jennifer L. [D-VA-4], Rep. Casar, Greg [D-TX-35], Rep. Davis, Danny K. [D-IL-7], Rep. Ocasio-Cortez, Alexandria [D-NY-14], Rep. Garamendi, John [D-CA-8], Rep. Salinas, Andrea [D-OR-6], Rep. Lynch, Stephen F. [D-MA-8], Rep. Goldman, Daniel S. [D-NY-10], Rep. Hoyle, Val T. [D-OR-4], Rep. Takano, Mark [D-CA-39], Rep. Mfume, Kweisi [D-MD-7], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Panetta, Jimmy [D-CA-19], Rep. Neguse, Joe [D-CO-2], Rep. Deluzio, Christopher R. [D-PA-17], Rep. Schakowsky, Janice D. [D-IL-9], Rep. Scanlon, Mary Gay [D-PA-5], Rep. Budzinski, Nikki [D-IL-13], Rep. Lieu, Ted [D-CA-36], Rep. Ivey, Glenn [D-MD-4], Rep. Fletcher, Lizzie [D-TX-7], Rep. Sykes, Emilia Strong [D-OH-13], Rep. Norcross, Donald [D-NJ-1], Rep. McClain Delaney, April [D-MD-6], Rep. Garcia, Robert [D-CA-42], Rep. Landsman, Greg [D-OH-1], Rep. Barragán, Nanette Diaz [D-CA-44], Rep. McGovern, James P. [D-MA-2], Rep. Casten, Sean [D-IL-6], Rep. Levin, Mike [D-CA-49], Rep. Kelly, Robin L. [D-IL-2], Rep. Lawler, Michael [R-NY-17], Rep. Stansbury, Melanie A. [D-NM-1], Rep. Foushee, Valerie P. [D-NC-4] and 35 more
Recent Actions
- 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.
- 2025-01-16: Referred to the House Committee on Oversight and Government Reform.
- 2025-01-16: Introduced in House
- 2025-01-16: Introduced in House
Bill Versions
- Equal COLA Act — issued 2025-01-16 — PDF (2 pages)