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Q and A for federal workers: Raises vs. COLAs
The Washington Post: Question: I read that President Trump wants to give federal employees a 1.9 percent COLA. I also read that the COLA number won’t be decided until the fall. What gives?
Answer: President Trump’s recent budget proposal recommends a 1.9 percent raise for federal employees in January 2018. Note the word “raise.” Current employees get pay raises. Retirees get COLAs, or cost of living adjustment.
Although the federal employee pay raise often is called a COLA, it is not determined by inflation but rather is linked—if only loosely—to salary growth in the private sector.
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