5 CFR § 591.228
How does OPM convert the price index plus adjustment factor to a COLA rate?
November 4, 2020
(a) OPM converts the price index plus the adjustment factor to a COLA rate as shown in the following table:
Open Table
| Price index plus adjustment factor | COLA rate subject to paragraph (b) of this section |
|---|---|
| Equal to or greater than 124.50 | 25 percent. |
| Equal to or greater than 102.00 but less than 124.50 | Price index plus the adjustment factor, minus 100, expressed to the nearest whole percent. |
| Less than 102.00 | 0 percent. |
(b) This section is applicable on an area-by-area basis beginning with the effective date of the results of the first survey conducted in each area.
(c) OPM may reduce the COLA rate in any area by no more than 1 percentage point in any 12-month period. Any reduction in the COLA rate for any COLA area cannot be effective until the effective date of the first survey conducted in Hawaii and Guam and CNMI under these regulations.
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