Proposal Would Change Calculation Rate of the TSP Annuity COLA

The Federal Retirement Thrift Investment Board (FRTIB) has proposed a change to the rate used to calculate the annual increase for annuities in the Thrift Savings Plan.

Currently, when a TSP participant elects to receive an annuity with an increasing payment option, the increase in the amount of his or her monthly annuity payment each year is based on the annual change in inflation as measured by the Consumer Price Index (CPI). Increases cannot exceed 3% per year.