There have been some questions as to whether or not COLA is computed in retirement computations. As far as I can tell they are not - see below. Now, COLA is figured into your pay while your working.
FERS
http://www.usps.com/cpim/ftp/manuals/elm/h...mc5/elm580_006.html586 Annuity Computation
586.252 Basic Pay
Basic pay for retirement purposes includes higher level pay but does not include cost-of-living adjustments (COLA, TCOLA), overtime pay, night differential, military pay, allowances, premium pay, or lump-sum terminal leave benefits.
CSRS
http://www.usps.com/cpim/ftp/manuals/elm/h...mc5/elm560_006.html566 Annuity Computation
566.252 Basic Pay
Basic pay for retirement purposes includes higher level pay but does not include cost-of-living adjustments (COLA, TCOLA), overtime pay, night differential, military pay, allowances, premium pay, or lump-sum terminal leave benefits.
Rick Owens - PEN