Is your Public Pension COLA'd?

[kyounge1956]

This is almost correct. On the day that I retire they calculate my pension amount. If it the amount is $50,000, then I get an immediate 4% bump so in the first year I get $52,000. The COLA increase continues to be an additional $2000 every year.

I'm still confused. When I retire, they will calculate my pension, and that's how much it is. Why isn't this just called a starting pension benefit of $52,000? Is it so your annual increase in later years is $2000, not $2080 (4% of $52K)?

 

[Nords]

Still wondering (since my question on another thread got derailed),is a military reserve pension the same as a regular military pension for same rank at retirement?
A.

In addition to MartyB's excellent post #21, see:
http://www.early-retirement.org/forums/f28/the-value-of-a-csrs-pension-52752.html#post991942

 

[utrecht]

I'm still confused. When I retire, they will calculate my pension, and that's how much it is. Why isn't this just called a starting pension benefit of $52,000? Is it so your annual increase in later years is $2000, not $2080 (4% of $52K)?

I get the annual increase of 4% of the original pension amount....but instead of waiting a year to get my first increase, I get it on day 1. I dont know why that is.

 

[Sue J]

DH's pension (state of Ohio) is COLAed 3% based on the original amount. Every year the amount is the same, no compounding.