LEO: Cost of Living Adjustments (COLAs)

The federal LEO workforce is well acquainted with COLAs during their work careers.  As we present information in a comprehensive-friendly environment, it is our goal in providing that information to assist in paving the way for federal and postal employees to retire well.

COLAs extend into retirement.  Retirees’ annuities are increased for cost-of-living adjustments if they meet certain criteria: (1) You retired on disability, except if you receive a disability annuity based on 60 percent of the high-3 average salary.  This normally happens during the initial year of receiving disability benefits. (2) You are over 62 years of age. (3) You retired under special provisions for Law Enforcement Officers.* (4) A portion of your retirement is calculated under the Civil Service Retirement System (CSRS).

If you are a FERS retiree and are under age 62 and don’t meet the above criteria, you are not eligible for a COLA until you reach the age of 62.

*Provisions also cover Air Traffic Controllers and Firefighters.

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Related LEO Articles

What Is LEO Retirement

LEO Mandatory Retirement Age

Explanation of FERS Component for LEOs

LEO (Law Enforcement Officer) FERS Supplement

LEO Annuity Component Computations

Million Dollar LEO Question

LEO and FERS Basic Annuity

Law Enforcement Officers (LEOs) fall under special retirement provisions which make them eligible for an Annuity during their retirement.  Although there are other categories of employees who also fall under these Annuity provisions (i.e. Firefighters, Air Traffic Controllers, and Nuclear Materials Couriers) LEO requirements also have some unique provisions that may require LEOs to approach their unique retirement benefits from a different angle.

The FERS basic annuity formula (which is the annuity formula used by LEOs today) is generally calculated as follows:  If you are eligible under FERS and also under age 62 when you retire or 62 years of age or older with less than a 20 year tenure, 1 percent of your high-3 average salary for each year of service is calculated. At age 62 or older with 20 plus years of service, then the formula is 1.1 percent of the high-3 average salary based on each year of service.

Law Enforcement Officers covered under FERS will use the formula of 1.7 percent of their high-3 average salary multiplied by the years of service that do not exceeed 20.  In addition, 1 percent of the high-3 average salary is again multiplied by all years of service beyond 20 years.

In summary the FERS LEO annuity formula employs a two-step procedure.  Service up to 20 years is calculated at 1.7 percent of the high-3 average salary.  Any years worked beyond 20 years is calculated at 1 percent of the high-3 average salary.  The calculations are added together or combined to arrive at the FERS LEO Basic Annuity.

There is more to discuss relevant to non-disability retirement annuity formulas and calculations.  We will stop here and discuss the other facets of the calculations in an upcoming post.

P. S. Always Remember to Share What You Know.

Why Not an Integrated LEO Retirement System?

Why wouldn’t an integrated LEO retirement system exist?  The changing dynamics in our nation and around the globe call for not only duty mission changes, but changes in the way human resources standards and procedures are applied, including retirement.  The federal classification system entails position duties and summaries of those duties for perhaps any occupation one can think of.

I used to play a ‘what is most important’ game with myself as an HR Executive – what is the most important aspect of Human Resources-Human Capital Management, what is defined by what employees value most?  Initially, I voted for making certain payroll was always uninterrupted.  People want their paychecks.  But as times and circumstances have matured, I find that the paycheck is still a top draw, but a check after retirement is equally as important.  So a paycheck is a paycheck is a paycheck.

Human Resources personnel have a duty to make retirement systems as easy to understand as possible so that recipients of those systems will understand most emphatically how to optimize the benefits of those sytems.  Individuals in Law Enforcement have been particularly impacted by provisions that are not necessarily clear and easy to navigate.  This is where an integrated LEO retirement system would make such a positive impact.

In a previous post we attempted to list occupations covered or identifed as Law Enforcement Occupations for the purpose of retirement and those not-covered.  By definition in brevity, law enforcement officers have the authority to make arrests, detain and apprehend persons suspected of or involved in criminal activity.  Yet, there are other law enforcement officers who perform these same or very similar duties who are not classified as LEOs, or qualify as Federal Law Enforcement Officers.

Therefore, the LEO retirement systems appear bifurcated at best which gives way to a question of ‘equity and parity in pay’.  The occupation of Law Enforcement requires individuals that are physically vigorous and under the age of 37 upon entry into the profession.  With mandatory retirement provisions, many LEOs leave service as very young people with so much worklife left.

A question that always comes up in LEO retirement training classes is; Must we leave the federal service upon mandatory retirement age?  One provision HR personnel typically do not make crystal clear is that LEOs must leave their classification (except under special circumstances), but do not necessarily have to leave the federal service.

It is my experience that a great number of LEOs feel they must leave the Federal Government upon reaching full retirement age.  These highly-trained personnel have much to contribute to their nation in a countless number of ways.  Individuals who serve our country by promulgating law and order often put their lives at risk, even more reason for personnel officials and human resource policy makers to ensure a retirement system that is clear, transparent, easily understood with no ambuiguity as to do I qualify or not for provisions within a certain classification of employees.

As a past Federal Human Capital Leader, I am a strong advocate of consistent and regular communication between HR and the people we serve throughout the federal service.   There is no greater tool than open, proactive communication and information dissemination in establishing a seamless framework of effective operations designed to serve customers from stem to stern.  An integrated LEO retirement system would be a good place to start.

P. S. Always Remember to Share What You Know.

Covered and Non-Covered LEO

We are featuring topics this segment of the posts on Law Enforcement Occupations and specifically what employees are covered by the special retirement benefits afforded to Law Enforcement Officers (LEO).  We attempt to be as comprehensive and clear in presenting information to federal and postal employees and the general public as possible.

In the previous post, we itemized some of the covered law enforcement occupations that typically qualify under the Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS).

Some additional occupations that qualify as covered for retirement purposes in the Law Enforcement Occupations are: Law Enforcement Park Rangers, TSA Federal Air Marshals, U.S. Marshals, Secret Service Uniformed Division Officers covered under FERS, and the Office of the Inspector General investigators in a number of federal agencies.

There are also some non-covered Law Enforcement Officer Occupations that do not ordinarily qualify for LEO Retirement benefits for the purpose of retirement under FERS and CSRS. The list includes, but is not necessarily limited to:  Veteran Affairs Police, IRS Revenue Officers, Police in the United States Mint, Department of Defense Police, Government Printing Office Police, Drug Enforcement Agency Diversion Investigators, Department of Homeland Security Federal Protective Service, Secret Service Special Officers, Assistant U. S. Attorneys, Police at the Bureau of Engraving and Printing and guards at other Government installations.

It is always important to understand as much about your retirement benefits as possible and this is especially important when it comes to Law Enforcement Officers.  If you are an LEO you should find out as soon as possible how you are classified and what federal retirement system you are eligible under.  This post is merely to expand the list of covered and non-covered occupations in law enforcement.  But as a precaution, take some time out of your busy schedule to visit your Human Resources Office or the Human Resources designee to have a chat about your status as an LEO and the impact on your retirement.

It can be frustrating to find out that something is not what you thought it was early, but it can be absolutely near unmanageable if you find out at the very end of your career that there is a problem.  Most of the problems can be fixed, but starting early to get your house in order is the best way to settle down into a comfortable and safe retirement.

P. S. Always Remember to Share What You Know.

LEO and FERCCA

A Law Enforcement Official (LEO) is defined under title 5 as an employee whose chief responsibilities are to investigate, apprehend, or detain individuals  suspected of or convicted of an offense against the criminal laws of the United States.  It is further the LEO’s responsibility to protect officials of the United States against threats to their personal safety.

There is often confusion as to who qualifies as a Federal Law Enforcement Officer.  Therefore, it is always a good idea to check with your Human Resources Office to verify and validate your official status or designation.

Because the duties and responsibilities of LEOs are sufficiently rigorous with a high risk of danger, the law stipulates that  LEO employment opportunities should be at best limited to persons between the ages of 21 and 36 who have not reached their 37th birthday and be in excellent physical health.  There are Law Enforcement categories whose age requirements might differ slightly.  However, the upper end of the spectrum is in most cases the same, having not reached the age of 37.

For clarity, we are going to list those positions that are typically considered Law Enforcement Officers (LEOs):  FBI special agents, Park Police (covered under FERS), Secret Service Agents (covered under FERS), Capitol Police, Border Patrol agents, Customs Investigators, Criminal Investigators, Deputy U.S. Marshals, Federal Probation and Parole Officers, Instructors at the Law Enforcement Training Center (FLETC) are covered as secondary LEO positions, and many other positions that fall under the Bureau of Prisons and the Federal Bureau Prison Industry.

It is important for any category of LEO, particularly in the Federal Service where a number of special provisions apply for the purpose of retirement, to check their classification status so they are certain to reap all of the LEO retirement benefits available to them.  It cannot be emphasized enough that federal employees should check with their Human Resources Office to make certain they are appropriately classified and are in the correct retirement system.  FERCCA (Federal Erroneous Retirement Coverage Corrections Act) attempts to correct the long-term harm employees may face who have been put in the wrong retirement system.

The Federal workforce is such a huge entity that errors are inevitable and for LEOs that is no different.  However, the good news is that provisions such as FERCCA are in place in order to assure the best possible retirement planning for the Federal workforce and for LEOs alike.  FERCCA could allow individuals placed in the wrong retirement plan an opportunity to make up contributions to the Thrift Savings Plan and possibly recover lost earnings on those contributions.  FERCCA also may benefit impacted employees via rule changes that might make a difference in how their service computation towards retirement was handled.

There are even circumstances where LEOs might be allowed to choose another retirement plan or be reimbursed for out-of-pocket expenses you might have incurred as a result of being in the wrong retirement plan.

P. S.  Always Remember to Share What You Know.

To know more about LEOs and how Phased Retirement may impact you Read This