Mulligan
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- May 3, 2009
- Messages
- 9,343
I am amazed (not being a sophisticated math person) at how a few tweaks can fully fund a 30 billion asset pension system. My retirement system is about to limit COLAS from yearly inflation rate, to a 2% annual cola (80% cap) unless CPI goes to 5% which it will then allow a 5% cola for that year. By making this adjustment to the system, the trust fund goes from 80% to 100% funded. I was originally going to get 3.5%, but I will probably only get 2%. I'm not complaining, in fact I am pleased to know this will secure the fund as I don't want it to run out when I'm 75 and can't go back to work, and definitely don't want or expect to count on a tax payer bailout! I'm just amazed at how a slight change results in dramatic changes to the security of a pension system. I guess it also speaks on potentially how expensive cola pensions are to a retirement system