COLA Update

[mickeyd]

Received this as part of an email from MOAA. Basically~ "We could get a COLA".

After more than two years in the hole, the CPI finally crept back above zero in January. Inflation rose 0.5% for the month and now stands at plus 0.3% for the year. Barring another implosion of the economy retirees will see at least a modest COLA increase in 2012.

 

[Mulligan]

Received this as part of an email from MOAA. Basically~ "We could get a COLA".

Never really followed monthly CPI reports until I retired. The .4% increase in Jan. has got me to 1.4 since start of fiscal year. I need .6 more by June to get a guaranteed COLA. If it stays below 2% they dont have to give one in my pension.

 

[BLS53]

I look for 1.5%-2.5% this year for military pensions and SS.

The 2 years of no COLA is starting to affect my lifestyle. The constant toying with the income tax withholding tables for various stimulus plans, that military pensioners have to pay back come April 15, hasn't helped either.

 

[W2R]

Having retired from federal service in 2009, I have never seen a COLA. What is this strange thing?

An increase would be so welcome, though it's hard to count on any COLA until it hits the bank.

 

[jimnjana]

I look for 1.5%-2.5% this year for military pensions and SS.

The 2 years of no COLA is starting to affect my lifestyle. The constant toying with the income tax withholding tables for various stimulus plans, that military pensioners have to pay back come April 15, hasn't helped either.

Many retirees that have had their taxes done at the VITA site where I volunteer have been surprised by the amount that they owe Uncle. We try to explain to them the "stimulus" they receive through out the year was just a loan...

 

[BLS53]

Many retirees that have had their taxes done at the VITA site where I volunteer have been surprised by the amount that they owe Uncle. We try to explain to them the "stimulus" they receive through out the year was just a loan...

Hopefully all these stimulus plans have played out, and now my take home pay is back to what is was in 2008. I usually can get my withholding to within $50 of a refund or amount owed come tax time. But DFAS has changed the withholding 4 times in the last 2 years, because of the "make work pay" stimulus,which doesn't apply to military retirees, but they reduce the withholding anyway. I tried jockeying the deductions around, but they reduce the monthly pension too much, and I don't like big (for me anyway) refunds. It should be ok after this upcoming return is paid.