The 2013 cost-of-living adjustment for federal annuitants and Social Security beneficiaries is 1.7 percent.
The COLA reflects the percentage increase in the average Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the third quarter of the current year over the average for the third quarter of the last year in which a COLA became effective.
Since the COLA is less than 2 percent, retirees in both the Foreign Service Retirement and Disability System and the Foreign Service Pension System have received a 1.7 percent increase. (If the increase were more than 3 percent, the computation for the two systems would be different.)
The 2013 increase took effect on Dec. 1 and was reflected in the first annuity payment in January 2013.
The COLA does not affect the salaries of federal employees.