According to FECA Bulletin No. 21-03, the cost-of-living adjustments granted to a compensation recipient under the FECA are based on the “Consumer Price Index for Urban Wage Earners and Clerical Workers” (CPI-W) figures published by the Bureau of Labor Statistics (BLS). The annual cost of living increase is calculated by comparing the base month from the prior year to the base month of the current year, with the percentage of increase adjusted to the nearest one-tenth of 1 percent. 5 U.S.C. §8146(a) establishes the base month for the FECA CPI as December.

December 2019 had a CPI-W level of 250.452 and the December 2020 level was reported by BLS as 254.081. This means that the new CPI increase, adjusted to the nearest one-tenth of one percent, is 1.4 percent. The increase is effective March 1, 2021, and is applicable where disability or death occurred before March 1, 2020. In addition, the new base month for calculating the future CPI is December 2020.