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2026 cost-of-living adjustments for Social Security and federal civilian pensions
Summary ETA tells state unemployment agencies about the 2026 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 identify affected claimants and apply the increase as state law requires. The attachment lists prorated increases for Civil Service Retirement System and Federal Employees Retirement System annuities, effective December 1, 2025.
Document
Federal guidance
Agency
U.S. Department of Labor, Employment and Training Administration (ETA)
Document number
UIPL No. 05-26
Date issued
December 30, 2025
Status
Active
The letter states that it rescinds nothing and has a Continuing expiration designation. Its adjustment table took effect December 1, 2025.
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 30, 2025
ADVISORY: UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 05-26
TO: STATE WORKFORCE AGENCIES
FROM: LORI FRAZIER BEARDEN
Acting Assistant Secretary
SUBJECT: Social Security Annuities and Federal Civilian Pensions Cost-of-Living
Adjustments
1. Purpose. To ensure State Workforce Agencies (SWAs) are aware of 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) 2026.
2. Action Requested. The Employment and Training Administration (ETA) requests that State
Administrators provide the information in this Unemployment Insurance Program Letter
(UIPL) and Attachment I to the appropriate staff.
3. Summary and Background.
a. Summary – This UIPL provides SWAs with information regarding the (CY) 2026 COLA
information effective December 1, 2025.
b. Background – The COLA information for social security survivors and old age retirement
annuities and Federal civilian pensions is based on the previous year’s Consumer Price
Index (CPI). These COLA adjustments become effective December 1, 2025.
4. Instructions. Based on the increase in the CPI, there are COLA adjustments for retired pay,
and pensions effective December 1, 2025 (see Attachment I). For more information, visit
https://www.opm.gov/retirement-center/my-annuity-and-benefits/annuity-
payments/#url=Cost-of-Living.
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 identify
claimants affected by the COLA increases and make the appropriate reductions as required
by state law.
5. Inquiries. Please direct inquiries to the appropriate ETA Regional Office.
RESCISSIONS EXPIRATION DATE
None Continuing
6. References.
• 5 U.S.C. Chapter 85, Unemployment Compensation;
• 20 C.F.R. Part 609;
• 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 12/01/2025.
Attachment I
Prorated Civil Service Retirement System (CSRS) and Federal Employees Retirement
System (FERS) COLA Effective 12/01/2025
This information is carried over from www.opm.gov/retirement-center/my-annuity-and-
benefits/annuity-payments/#url=Cost-of-Living.
Under the Civil Service Retirement System (CSRS) and the Organization Retirement and
Disability System (ORDS), the COLA will be 2.8 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 2024 or earlier 2.8% 2.0%
January 2025 2.6% 1.8%
February 2025 2.3% 1.7%
March 2025 2.1% 1.5%
April 2025 1.9% 1.3%
May 2025 1.6% 1.2%
June 2025 1.4% 1.0%
July 2025 1.2% 0.8%
August 2025 0.9% 0.7%
September 2025 0.7% 0.5%
October 2025 0.5% 0.3%
November 2025 0.2% 0.2%
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