COLA accumulation


Q: If you accept an early retirement with VSIP at age 54, then there is no COLA increase until age 62. How is the annuity computed at 62? Do the COLA increases accumulate over those eight years?

A: No, they don’t accumulate. The annuity you receive when you retire will remain frozen until you reach age 62, at which point you’ll be eligible for your first cost-of-living increase.


About Author

Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to

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