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2025 cost-of-living adjustments for Social Security and federal civilian pensions

Summary ETA tells state unemployment agencies about the 2025 cost-of-living increases for Social Security annuities and federal civilian pensions. Where a state's law reduces unemployment benefits based on pension income, it asks the agency to update its systems for the adjustment. The attachment lists prorated increases for Civil Service Retirement System and Federal Employees Retirement System annuities, effective December 1, 2024.
Document
Federal guidance
Agency
U.S. Department of Labor, Employment and Training Administration (ETA)
Document number
UIPL No. 04-25
Date issued
December 6, 2024
Status
Active
The letter states that it rescinds nothing and has a Continuing expiration designation. Its adjustment table took effect December 1, 2024; UIPL No. 05-26 later supplies 2026 adjustments.
Status last verified October 24, 2026

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About this page: The full text below is the official document from U.S. Department of Labor, Employment and Training Administration (ETA). Ezel adds the plain-English summary and tracks the document's status. The official source linked on this page is authoritative for any reliance.
CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION                 Unemployment Insurance
               ADVISORY SYSTEM                            CORRESPONDENCE SYMBOL
          U.S. DEPARTMENT OF LABOR                        OUI/DUIO
             Washington, D.C. 20210                       DATE
                                                          December 6, 2024


ADVISORY:       UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 04-25

TO:             STATE WORKFORCE AGENCIES

FROM:           JOSÉ JAVIER RODRÍGUEZ
                Assistant Secretary

SUBJECT:        Social Security Annuities and Federal Civilian Pensions

1. Purpose. To ensure that states are aware that the social security survivors and old age
   retirement annuities and the Federal civilian pensions annual cost-of-living adjustment
   (COLA) increased for calendar year (CY) 2025, and to provide the U.S. Office of Personnel
   Management’s (OPM) COLA information.

2. Action Requested. State Administrators should provide the information contained in this
   Unemployment Insurance Program Letter (UIPL) to appropriate staff.

3. Summary and Background.

   a. Summary – This UIPL provides the CY 2025 COLA information and informs states to
      make necessary programming adjustments to accommodate the COLA increase.

   b. Background – Each year, OPM posts the COLA information for social security survivors
      and old age retirement annuities and Federal civilian pensions on its website. The 2025
      COLA information is located at: https://www.opm.gov/retirement-center/my-annuity-
      and-benefits/annuity-payments/#url=Cost-of-Living. The Employment and Training
      Administration (ETA) is providing these tables in Attachment I.

4. Instructions. States that have laws requiring a reduction of the unemployment insurance
   (UI) weekly benefit amount by the prorated weekly amount of retired pay and pensions
   should program the increase in the COLA amount for CY 2025 into their UI systems.

5. Inquiries. Please direct inquiries to the appropriate ETA Regional Office.


   RESCISSIONS                                             EXPIRATION DATE
   None                                                    Continuing

6. References.
      • 5 U.S.C. 8502(b); and
      • Employment and Training Handbook No. 391, Unemployment Compensation for
         Federal Employees Handbook for State Agencies, Chapter VII (3)(g).
         https://www.dol.gov/agencies/eta/advisories/handbooks/et-handbook-no-391.

7. Attachment. Attachment I: Prorated Civil Service Retirement System (CSRS) and Federal
   Employees Retirement System (FERS) COLA Effective 12/01/2024.

                                                                                   Attachment I


  Prorated Civil Service Retirement System (CSRS) and Federal Employees Retirement
                       System (FERS) COLA Effective 12/01/2024


Social Security Annuities and Federal Civilian Pensions

Under the Civil Service Retirement System (CSRS) and the Organization Retirement and
Disability System (ORDS), the COLA will be 2.5 percent for those who have received benefits
for at least one year. Under the Federal Employees Retirement System (FERS) and FERS
Special, the COLA will be 2.0 percent for those who have received benefits for at least one year.

The table below shows the prorated percentage increase according to the month the retiree’s
annuity began.


            Monthly Annuity Began              Amount of Percentage Increase
              Retirement System                  CSRS                    FERS
          December 2023 or earlier               2.5%                    2.0%
          January 2024                           2.3%                    1.8%
          February 2024                          2.1%                    1.7%
          March 2024                             1.9%                    1.5%
          April 2024                             1.7%                    1.3%
          May 2024                               1.5%                    1.2%
          June 2024                              1.3%                    1.0%
          July 2024                              1.0%                    0.8%
          August 2024                            0.8%                    0.7%
          September 2024                         0.6%                    0.5%
          October 2024                           0.4%                    0.3%
          November 2024                          0.2%                    0.2%

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