Originally Posted by Mulligan
Pension system thought they were getting crafty by switching our COLAS from yearly CPI to a flat 2%. Well CPI came in at 1.7%, so much to their chagrin they wound up giving us a small bonus for one year anyways.
The fixed COLA's work well for the retiree during low inflation. I'm not sure they work so well for the pension grantor. Illinois has a flat 3% for teacher pensions, and have to think that is part of the problem with this state's pension problems.
Any COLA provision is good in this day and age. I can't imagine drawing a pension for decades with no COLA. But I suppose it would be better than no pension at all.