COLA will be at least 6.2% for Jan checks

[BLS53]

Quote:

Originally Posted by Goonie BLS53, what Spanky said.....the Gubmint Index. The annual January increase is a 'locked-in' guaranteed amount. The annual July increase fluctuates and is based on some sort of equation based upon # of current retirees and # of Gov't employers paying in to the pension fund.....then the pension fund people do some sort of diabolical cyphering to determine an amount that each of those Gov't employers are required to kick-in to fund the July 'bonus' payment. This year the amount we received was equivalent to 55.405% of our normal monthly pension check. There's legislation pending that would lock the amount in at the equivalent of 75% of our monthly check. That's one reason that I keep active in 'senior affairs', and in touch with our elected officials down at the capitol.

Interesting, never heard of that before. Looks like us military retirees need stronger lobbiest. I'd like a piece of that action

[Helena]

The only thing that can reduce the 6.2% is a negative August and/or September.

http://www.narfe.org/departments/leg...les.cfm?ID=942


~

[rickier55]

Quote:

Originally Posted by Helena The only thing that can reduce the 6.2% is a negative August and/or September. http://www.narfe.org/departments/leg...les.cfm?ID=942 ~

In the last 10 years (not much of a sample I know - but I'm too lazy to lok up the longer timeframe data), that has happened twice. So it wouldn't be a great shock for it to happen again.

Particularly since the two times it happened were the last two years. Fortunately, it wasn't a BIG drop in the average. (.1 % I think for both times).

Rick

[OAG]

Only year in the past 14 years was FY 2006 (Sep below July) http://www.moaa.org/serv/serv_payben...c/lac_cola.htm

[rickier55]

Quote:

Originally Posted by OAG Only year in the past 14 years was FY 2006 (Sep below July) http://www.moaa.org/serv/serv_payben...c/lac_cola.htm

It's the average of the quarter, not the final September number that determine the cpi increase. for 2007 the July-Aug-Sept avg was .1 below the July number.

Hence, the two years.

Rick

[friar1610]

Quote:

Originally Posted by Texarkandy 6.2 Cola for mil & fed retirees, huh? For active employees & mil Bush has proposed 2.9 & 3.4 respectively, but Congress is set to pass 3.9 for both. You'd think the fed govt would have a sane COLA policy based on some realistic economic indicator & that applies across the board to civilian, military, & retirees without having to go through all these political gyrations every year.

I agree. When I was on active duty, it used to p**s me off that retirees often got a bigger pay bump (on a percentage basis) than I did. I'm retired now, will certainly accept the increase to my pension, but would have absolutely no problem if I got no COLA adjustment IF the money I didn't get would go to the active duty and Guard folks who are making such great sacrifices at the moment. They deserve the money a lot more than I do.

[OAG]

Quote:

Originally Posted by friar1610 I agree. When I was on active duty, it used to p**s me off that retirees often got a bigger pay bump (on a percentage basis) than I did. I'm retired now, will certainly accept the increase to my pension, but would have absolutely no problem if I got no COLA adjustment IF the money I didn't get would go to the active duty and Guard folks who are making such great sacrifices at the moment. They deserve the money a lot more than I do.

Any of the NGO's that support Veteran's will take the donation. I think they would be in a better position, and do a much better job of, "targeting" the funds.

[Tadpole]

Off topic a bit but I'm curious about something. Usually wage inflation outpaces inflation but not now. So in the past new retirees generally fared better than older retirees. Now I assume the opposite might be true if this trend continues. Am I thinking correctly?

[OAG]

Could very well be the current trend. I have been "retired" for 29 years and the COLA increase has been 113.2% (1979-this year), on a non-compounded rate. This is a bit clouded as in the early years the index was not pure CPI, but it is close. Not sure what the wage index increases for the same period were.

[ERD50]

So even if you do not collect SS yet, this factors into the payments you would get when you do decide to take them, right?

I don't think my expenses have gone up anywhere near that this year, but in previous years they outstripped inflation, just from the increase in my health insurance.

-ERD50