The 2027 COLA got all the headlines, but it’s only one of nine numbers changing for federal retirees next year. Your health premiums, Medicare costs, earnings limits and more are all shifting too.
Here are all nine in one place, so you can get your 2027 numbers right before January.
The 9 changes at a glance
| # | What’s changing | 2027 |
|---|---|---|
| 1 | COLA | 3.6% CSRS and Social Security; 2.6% FERS 62+; none for regular FERS under 62 |
| 2 | FEHB premiums | Average enrollee share +10.9% (PSHB +8.2%) |
| 3 | Medicare Part B premium | About $209.50/mo estimated (was $202.90) |
| 4 | IRMAA | Based on your 2025 income; brackets not out yet |
| 5 | FERS Supplement earnings limit | $25,560 (was $24,480) |
| 6 | Social Security wage cap | $192,300 (was $184,500) |
| 7 | Social Security earnings test | $25,560 before FRA; $67,920 in the FRA year |
| 8 | FERS spouse death benefit | About $45,377 base amount (was $43,800.53) |
| 9 | Federal pay | GS base and locality frozen; 3.8% special rate slated for law enforcement |
Your retirement income
1. The COLA. CSRS retirees and Social Security recipients get 3.6%. FERS retirees 62 and older get 2.6%, because when inflation is over 3%, FERS gets inflation minus 1%. Regular FERS retirees under 62 get no COLA on their pension.
5. The FERS Supplement earnings limit. If you’re under 62, collecting the FERS Supplement, and still working, you can earn up to $25,560 in 2027 (up from $24,480). Above that, your supplement is cut $1 for every $2 you earn over the limit.
8. The FERS spouse death benefit. If an employee dies while still working, the base amount of the benefit for a surviving spouse rises to about $45,377 (from $43,800.53).
Your health costs
2. FEHB premiums. OPM says the average FEHB enrollee premium is going up 10.9% for 2027 (8.2% for PSHB). That’s an average, so your plan’s change could be much higher or lower. Open Season runs Nov 9 – Dec 14, 2026.
3. Medicare Part B. The 2026 standard premium is $202.90 a month. The Medicare Trustees estimate about $209.50 for 2027, but that’s only an estimate. CMS usually announces the official number in November.
4. IRMAA. Higher earners pay an extra surcharge on Medicare Part B and Part D, called IRMAA. Your 2025 income sets your 2027 surcharge, and top earners pay up to 85% of the program’s cost. The 2027 income brackets haven’t been released yet.
Social Security and pay
6. Social Security wage cap. The maximum wages taxed for Social Security rise to $192,300 in 2027, up from $184,500. This matters if you’re still working and earning above the old cap.
7. Social Security earnings test. If you claim Social Security before full retirement age and keep working, you can earn $25,560 before benefits are reduced. In the year you reach full retirement age, the limit is $67,920.
9. Pay for current feds. GS base pay and locality pay stay frozen at 2026 levels. A 3.8% special rate is slated for law enforcement.
What’s not changing (yet)
The Equal COLA Act would give FERS retirees the same full COLA as CSRS retirees. It was introduced in January 2025 but has stalled without a vote, so for 2027 the FERS “diet COLA” stays in place.
Key dates and what to do now
- Nov 9: Open Season opens. Look up your plan’s 2027 premium and compare plans on total yearly cost, not just the premium.
- November: CMS announces the official 2027 Part B premium. If you’re on FEHB and Medicare, factor it into your Open Season choice.
- Dec 14: Last day to change FEHB plans for 2027.
- January: The new numbers hit your check. Review your first 2027 annuity statement to make sure the COLA and premium changes look right.
The bottom line
2027 brings a smaller COLA for FERS retirees, bigger health premiums, and new limits across Social Security and the FERS Supplement. Get your numbers right before January, and use Open Season to make sure you’re in the right plan.
Are you a federal employee within 12 months of retirement, or already retired, with $1 million+ invested? Book a free 15-minute Fit Call. You can also download our free Federal Retirement Roadmap.
Educational only, not tax, investment, or legal advice. Please consult your own tax, legal and financial advisors for personalized advice. Haws Federal Advisors | HawsFederalAdvisors.com