The 2021 cost-of-living adjustment (COLA) of 1.3% for CSRS and FERS annuitants was announced on October 13, 2020. The tax items for tax year 2021 of greatest interest to most taxpayers include the following dollar amounts: The standard deduction for married couples filing jointly for tax year 2021 rises to $25,100, up $300 from the prior year. In 2020, Social Security recipients got a … A GS-13 Step 3 federal employee would receive an effective raise of $839.00 in 2021, from $83,927.00 per year (based on the 2020 GS base table ) to $84,766.00 per year. For technical assistance about COLAs Online see our TTB Online Help Center.. Tell us what you think. Latest COLA The latest COLA is 1.3 percent for Social Security benefits and SSI payments. The General Schedule (GS) payscale is the federal government payscale used to determine the salaries of over 70% of federal civilian employees. The cap on earnings subject to the Social Security (SS) tax will increase from the current $137,700 to $142,800 in 2021. Year 2021 Rate and Cost of Living Adjustments (Updated 12/15/2020) Rate and Cost Increases Effective 1/1/2021 2021Social Security Rates: See Social Security Administration website: www.ssa.gov There will be a 1.6% Cost of Living Increase (COLA) in 2020. It affects approximately 250,000 Service members at 600 locations overseas, including Alaska and Hawaii. For the year 2021, annuitants will receive a 1.3 percent increase. 2 Between 1962 (when Congress passed the first law enacting automatic COLAs for federal civil service retirement Employers and employees split the 12.4% tax (6.2% each) set by law to fund SS. The 2021 GS base pay table is displayed below. The bottom line: Seniors, who lost ground to inflation in 2020, are likely to lose even more ground in 2021. This memorandum provides the fiscal year (FY) 2021 Cost-of-Living Adjustments (COLA) to the Supplemental Nutrition Assistance Program (SNAP) maximum allotments, income eligibility standards, and deductions. If the CPI/W increases by at least 3 percent in a given year, the COLA increase will be the CPI/W minus 1 percent. Jan 14, 2021 Ask the Hammer Jeffrey Levine, director of advanced planning at Buckingham Wealth Partners, discusses in this Retirement Daily video whether to … This number was determined by comparing the December 2020 CPI-W (254.081) to the December 2019 CPI-W (250.452). Certain retirees, like disability, survivor, and other special provisions, have different COLA entitlement rules. Cost-of-Living Adjustment (COLA): Based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2019 through the third quarter of 2020, Social Security and Supplemental Security Income (SSI) beneficiaries will receive a 1.3 percent COLA for 2021. 2021 GS Pay Raise: This year, the General Schedule base payscale received a 1% across-the-board pay raise. The Administration proposes a one percent pay increase for Federal civilian employees for calendar year 2021, while also increasing funds available for on-the-spot and ratings-based performance awards. We still do not know what the final figure will be that is necessary for calculating the COLA to become effective in December and paid in January 2021. This number was determined by comparing the December 2020 CPI-W (254.081) to the December 2019 CPI-W (250.452). 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