Cola update

[mickeyd]

I clipped this from an email received from MOAA. Don't spend it yet.

The Consumer Price Index (CPI) dipped another 0.2% in July. As of now, inflation is only up 1.0% for the year. The 2013 COLA will be based on the CPI average from July through September.

With two months to go in the 2013 COLA count, will the CPI continue its recent slide, or bounce up like it did last year?

 

[MasterBlaster]

Food and energy prices will dominate any change in the index. Those two are quite volitile and could go any which way. Predictions for food though are up due to the drought.

 

[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.

 

[BLS53]

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.