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Old 10-14-2018, 08:28 AM   #61
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Originally Posted by gauss View Post
If it is not a permanent increase, I think there is a SSA form that you can fill out to request reconsideration.
I thought this too....
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Old 10-14-2018, 08:38 AM   #62
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Originally Posted by gauss View Post
I was more concerned with the wage index (AWI) in that I am not 60 years old yet.

Oct 11 the page was updated. Oct 10 had the old data.

The SS retirement benefit modeler seemed to be updated to reflect the new AWI value also on Oct 11.

-gauss
I am also under 60, but the site I use below which is an official SS site, doesn't appear to be updated.
Perhaps because I am close to 60 (58) and earning zero income, there is no effect?

https://www.ssa.gov/myaccount/lp/landing-page-re.html
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Old 10-14-2018, 09:42 AM   #63
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Originally Posted by Mdlerth View Post
Not to mention that, for those of us still toiling in the vineyards, the wage base subject to FICA tax will be nudging upward to $132,900.

SSA says that the recipients will receive an increase of 2.8%. But the boost in the 2019 wage base is 3.5%, and the bend points also go up about that much.
So does the existing wage base get adjusted by the 3.5 or the 2.8? I guess now I'm wondering if its possible that even though I have met the 2nd bend point, without having new income and being 20 years from FRA, is it possible I will no longer be past the 2nd bend point?

I had assumed bend point/wage record/wage base would increase by a wage index and the payout (or estimated payout in my case) would adjust by CPI-W, but now I'm questioning those assumptions.
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Old 10-14-2018, 09:54 AM   #64
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I tried to log in to SS last night but it didn’t work. Must be down for maintenance.
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Old 10-14-2018, 10:01 AM   #65
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Originally Posted by Dtail View Post
I am also under 60, but the site I use below which is an official SS site, doesn't appear to be updated.
Perhaps because I am close to 60 (58) and earning zero income, there is no effect?

https://www.ssa.gov/myaccount/lp/landing-page-re.html

I think you are correct. It looks the SS modelers have not been updated yet with the Oct 2018 adjustments to National Average Wage Index (AWI).

Thank you for the "Fact Check"

-gauss
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Old 10-14-2018, 10:03 AM   #66
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So does the existing wage base get adjusted by the 3.5 or the 2.8? I guess now I'm wondering if its possible that even though I have met the 2nd bend point, without having new income and being 20 years from FRA, is it possible I will no longer be past the 2nd bend point?

I had assumed bend point/wage record/wage base would increase by a wage index and the payout (or estimated payout in my case) would adjust by CPI-W, but now I'm questioning those assumptions.
I believe your original assumption was correct. Once you are pass then 2nd bend point, you stay forever pass the 2nd bend point.

Both prior wages and the bend points are updated each year based upon the National Average Wage Index (AWI).

The SS COLA (CPI-) that year hear quoted in the media only applies once your Primary Insurance Amount (PIA) is calculated - some time after age 60. Before this the benefit increases on past earnings are all based on wage inflation (ie AWI).

The following AWI page includes the value of the index for each year including the recently announced increase of 3.45% [for 2017 (50,321.89) over 2016 (48,642.15) ].

https://www.ssa.gov/OACT/COLA/AWI.html

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Old 10-14-2018, 04:03 PM   #67
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Does anyone know when the SS site gets updated to reflect the 2.8% increase?
Since the effective date of the 2.8% increase is 1/1/2019, you can expect to receive notice in the mail after thanksgiving sometime.
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Old 10-17-2018, 04:07 PM   #68
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Boomerbenefits Article

Hello everyone,

The Social Security Administration has announced a 2.8% cost-of-living adjustment for your retiree income benefits next year. Yay!

This is the largest COLA increase since 2012.

Sometimes when this happens, we also see a large increase in Medicare Part B premiums, but fortunately, that's not the case this year.

The standard Part B premium will go up only $1.50/month next year to $135.50. This is what most beneficiaries pay, although there are two exceptions.

A small group of beneficiaries - around 2 million beneficiaries - will pay slightly less due to the hold harmless provision that prevents the Part B premium from going up so much that it causes a decline in your income benefits.

This provision has kicked in once or twice for certain beneficiaries in recent years so they are paying slightly less.

Then around 5% of beneficiaries will pay more for their Part B premiums based on their incomes. If you earned more than $85,000 filing individual or $170,000 filing jointly in 2017, then Social Security will assess an Income-Related Monthly Adjustment Amount (IRMAA).

While most high-income earners will not see an increase in premiums, individuals in the very highest income bracket can expect to see a 10.3% increase in their Part B premiums.

Also, if you are currently paying an IRMAA or expect to be assessed one due to your 2017 income, but you earn less now than you did in 2017 due to retirement or another reason, then you might be able to file a Reconsideration Request with Social Security to have that reduced.
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Old 10-17-2018, 05:04 PM   #69
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The standard Part B premium will go up only $1.50/month next year to $135.50. This is what most beneficiaries pay, although there are two exceptions.

I'm paying like $202/month so must be making too much money. But didn't have Joint Married income more than $170K so not sure what is up.
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Old 10-17-2018, 05:09 PM   #70
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It’s looking back two years ago, I believe.
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Old 10-17-2018, 05:45 PM   #71
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I'm paying like $202/month so must be making too much money. But didn't have Joint Married income more than $170K so not sure what is up.
Sounds very close to the over 170k MFJ numbers when you include the Prescriptions. Perhaps 2 years ago you were there?
I would check into it sooner than later.
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Old 10-17-2018, 08:07 PM   #72
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Better than Megaconglomocorp was giving!
Exactly my first thought upon reading the thread title. You beat me to it!
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Old 11-02-2018, 01:32 PM   #73
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Isn’t the CPI announcement (we just had) in October enough to determine the IR and thus calculate what iBond rate will be announced on 11/1/18.
So they raised the fixed rate to 0.5% on the new iBonds! That's a lot higher than it's been in a long time - since 2007?
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Old 11-02-2018, 01:48 PM   #74
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So they raised the fixed rate to 0.5% on the new iBonds! That's a lot higher than it's been in a long time - since 2007?
Sure is. I think it was .3 for the past 6 months. It may be worth starting to buy Ibonds again. The FR we have is 1%, which has helped in this low interest rate environment, so our new rate 3.3316%.
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Old 11-07-2018, 04:12 PM   #75
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Bad news for me. I've got a non-COLA'd pension. This reminds me that it is shrinking. I was happier with those 1% increases.
I get my first federal pension COLA in 2019 and just realized that it will be 2%. The diet COLA formula for FERS is that if inflation is between 2 and 3%, the COLA is rounded down to 2%. Below 2%, the COLA would be the same as inflation. So pension is already eroding.
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Old 11-08-2018, 09:57 AM   #76
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I get my first federal pension COLA in 2019 and just realized that it will be 2%. The diet COLA formula for FERS is that if inflation is between 2 and 3%, the COLA is rounded down to 2%. Below 2%, the COLA would be the same as inflation. So pension is already eroding.
Not sure if any of your time was under CSRS (if maybe you switched to FERS voluntarily), but that figures into the COLA based on the % of your pension that resulted from CSRS. I retired under FERS but 75% of my pension was from CSRS time so in my case the upcoming COLA will be around 2.6%.
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Old 11-08-2018, 11:50 AM   #77
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I get my first federal pension COLA in 2019 and just realized that it will be 2%. The diet COLA formula for FERS is that if inflation is between 2 and 3%, the COLA is rounded down to 2%. Below 2%, the COLA would be the same as inflation. So pension is already eroding.
My FERS pension is going up just 2%, like yours (although my SS is going up the full 2.8%).

However, I seem to be spending less than I used to spend, not more. How odd! Maybe that is partly because I own rather than rent, so I don't have to deal with rent increases.
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Old 11-08-2018, 12:04 PM   #78
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Not sure how it equates, but I get a CSRS pension because I paid into CSRS. I will never get SS, because I haven't paid into it long enough. I've long suspected that FERS vs. CSRS, for me, would have been a wash, although I would not want to get into a big hooraw about it.

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I get my first federal pension COLA in 2019 and just realized that it will be 2%. The diet COLA formula for FERS is that if inflation is between 2 and 3%, the COLA is rounded down to 2%. Below 2%, the COLA would be the same as inflation. So pension is already eroding.
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Old 11-08-2018, 02:42 PM   #79
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I took the diet COLA into account in my FIRECALC calculations (based on recommendations of members in this forum) so am okay. Just did not expect so much inflation so soon in retirement. Missed CSRS by one year. I would have been better off with CSRS than FERS plus SS especially since in the words of imoldernu, I have no appetite for the stock market and did not do well despite throwing lots of money at it. Am tracking spending closely but even with lots of travel this year, I am within budget so all is good.
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