No 2010 COLA...

[REWahoo]

Quote:

Originally Posted by Nords The solution? Have the govt bail 'em out!

That might work, but only if we limit SS recipients bonuses and get stock...

[Bikerdude]

Quote:

Originally Posted by Nords We don't have many board members on Medicare, but Business Week makes the point that no Social Security COLA plus rising Medicare premiums equals a net reduction of income. Millions face shrinking Social Security payments - BusinessWeek

"Seniors may perceive that they are being hurt because there is no COLA, but they are in fact not getting hurt," said Andrew G. Biggs, a resident scholar at the American Enterprise Institute, a Washington think tank. "Congress has to be able to tell people they are not getting everything they want."

Step right up Senator, Granny has question for you.

[Notmuchlonger]

Quote:

Originally Posted by Bikerdude "Seniors may perceive that they are being hurt because there is no COLA, but they are in fact not getting hurt," said Andrew G. Biggs, a resident scholar at the American Enterprise Institute, a Washington think tank. "Congress has to be able to tell people they are not getting everything they want." Step right up Senator, Granny has question for you.

Yeah could you imagine that town hall meeting.

[freebird5825]

Ready, aim, FIRE !!!!!!

[Dennis]

Well apparently Our Medicare cost will be going up..so it will be less on the bottom line...

We're Up about 3.6% here on staples/Utilities/Gas for cars etc.so far..this yr vs last..and of course Med. bills..for the same we had last yr..

Not much we can do about it either way..
Just eat More Oatmeal I guess..
Already down to a 4 cycl. Car and loaded up on More Insulation and Long Underwear..

;>)

[Rustic23]

From this article, only about 1/4 of the Medicare recipients will be effected by no cola. e.g. their Medicare Part B payment will remain the same. However, the upper 1/4 are going to get hosed! I also appears the states will also.

http://www.kff.org/medicare/7912.cfm

[Notmuchlonger]

Quote:

Originally Posted by Dennis Well apparently Our Medicare cost will be going up..so it will be less on the bottom line... We're Up about 3.6% here on staples/Utilities/Gas for cars etc.so far..this yr vs last..and of course Med. bills..for the same we had last yr.. Not much we can do about it either way.. Just eat More Oatmeal I guess.. Already down to a 4 cycl. Car and loaded up on More Insulation and Long Underwear.. ;>)

I cant fathom how your gasoline bill would be higher this year. You driving more than normal?

[atlas888]

Just wondering if the esteemed members of the Congress are also not getting their COLA increase this year?

[ziggy29]

Quote:

Originally Posted by Bikerdude "Seniors may perceive that they are being hurt because there is no COLA, but they are in fact not getting hurt," said Andrew G. Biggs, a resident scholar at the American Enterprise Institute, a Washington think tank.

Yep -- we all know that energy and health care and food costs are going down...

[Nords]

Quote:

Originally Posted by donheff I always heard the COLA calculation described as based on the percentage increase in costs this year over last year calculated at end of August (e.g. 2009 against 2008). But if costs go down this year does the following year's COLA get calculated as the increase against this year's costs (i.e. 2010 against 2009) or at the higher 2008 base (2010 against 2008)?

Apparently that's a more difficult question than expected. Here's text from this week's MOAA update:

Quote:

Last week, we officially threw in the towel on any prospect for a 2010 COLA for Social Security, military/federal retired pay, SBP, and VA disability compensation recipients. With inflation 2.3% in the hole through the first 10 months of the fiscal year, inflation would have to rise more than 4.6% in the next two months (the COLA is based on the July/August/September average) for there to be a 2010 COLA, and that’s not going to happen. But this is the first time the nearly 50-year history of COLAs that there’s been negative inflation for the full year, and that sent us back to research how the COLA law deals with that event. We know there won’t be a cut in retired pay, Social Security, etc. There just won't be a COLA. But how about 2011? Does the "COLA clock" reset at zero, or do we start the new fiscal year in the hole by whatever negative number the CPI represents at the end of September? The short answer is that it's a cumulative calculation, and we will, in fact, start FY2010 in the "COLA hole." The law says the COLA is calculated based on CPI growth from the third quarter average to the next year's third quarter average. However, it specifies that the starting point for the calculation is the third quarter of the year prior to "the most recent adjustment..." So if there's no COLA in 2010, then the starting point for the 2011 COLA calculation still remains the third quarter of 2008. So inflation will have to rise at least a couple of percentage points during the next fiscal year before the 2011 COLA clock will even start.

[BLS53]

Amazing how much misinformation there is from callers on the various talk shows. "Congress decided to reduce SS this year" etc. I even heard one at a townhall healthcare meeting, saying "they've already slashed SS for next year, Medicare is next."

A little education on COLA is obviously needed. But people will believe what they want to believe.

[Independent]

Quote:

Originally Posted by atlas888 Just wondering if the esteemed members of the Congress are also not getting their COLA increase this year?

At least one member of congress raises this issue every year. This year it's likely to get more press. I looked up a little history, this is what I found:

Effective Date	Congress $	Congress %	SS COLA
1/1/2001	145,100	--	--
1/1/2002	150,000	3.4%	1.4%
1/1/2003	154,700	3.1%	2.1%
1/1/2004	158,100	2.2%	2.7%
1/1/2005	162,100	2.5%	4.1%
1/1/2006	165,200	1.9%	3.3%
1/1/2007	165,200	0.0%	2.3%
1/1/2008	169,300	2.5%	5.8%
1/1/2009	174,000	2.8%	0.0%

This assumes the currently scheduled 1/1/2009 numbers don't change. The big SS increase in 2008 is about equal to the combined Congressional increases for 2008 and 2009.

http://www.senate.gov/reference/reso...df/97-1011.pdf

[Martha]

The issue for the elderly is that their expenses often are different from the country as a whole so even if there is no inflation as a whole, the elderly as a group may still experience inflation.

But they are not the only group that is suffering. Wages are stagnant too. People are being laid off and we are getting close to having large groups running out of unemployment benefits.

[ziggy29]

Quote:

Originally Posted by Martha But they are not the only group that is suffering. Wages are stagnant too. People are being laid off and we are getting close to having large groups running out of unemployment benefits.

And these people are only buying the essentials that continues to increase in price, since they can't afford to buy much in the big-ticket discretionary segment of the market where the deflation is.

So it's a double whammy. They have the same (or less) income because of the so-called deflation, when their own cost of living (buying only essentials) is probably up by a nontrivial amount.

[Nords]

Here's another snippet of zero-COLA trivia:

Quote:

If no COLA is paid to social security recipients, said Dan Moraski, spokesman for the Social Security Administration, the law would protect many of them from an increase in Medicare Part B premiums in January. He said a "hold harmless" provision in the Medicare law would exempt about 75 percent from paying higher Part B premiums in any year in which Social Security pay is unchanged. The 25 percent not eligible for premium protection are individuals with modified adjusted gross incomes above $85,000 or couples with adjusted gross incomes of $170,000.

No Retiree COLA; Widows Win SBP Case

[Notmuchlonger]

I just bought .49 yogurt today. What a deal! Deflation on yogurt for sure.

[freebird5825]

Nothing voted on yet...but keep an eye on a recently proposed bill for a 2010 COLA fix...maybe, who knows what it may end up looking like.
Keywords to search on : The Social Security COLA Fix for 2010 Act (H.R. 3536)
http://thomas.loc.gov/cgi-bin/query/...mp/~c111NPnYSo::

Last week, Rep. Carolyn McCarthy (D-NY) introduced legislation that, if passed, ensures retirees will receive a cost-of-living-adjustment (COLA) in 2010. Source: //www.myfederalretirement.com/public/487.cfm

[ziggy29]

Quote:

Originally Posted by freebird5825 Nothing voted on yet...but keep an eye on a recently proposed bill for a 2010 COLA fix...maybe, who knows what it may end up looking like.

I don't suppose that will include interest on my I-bonds or TIPS, will it? Or make anyone give me a COLA?

Didn't think so.

[Texas Proud]

Quote:

Originally Posted by ziggy29 I don't suppose that will include interest on my I-bonds or TIPS, will it? Or make anyone give me a COLA? Didn't think so.

Another one of these buying of votes...


One thing that I see.... 50 mill getting SS checks is over 16% of the population... and I am sure that is going up...



I think... for the good of the country... in these hard financial times.... we should cut that back to say.... 10%... so, the top 18 mill seniors.. expect to not get checks going forward... we have other people to send this money to....



JUST KIDDING!!!!

[freebird5825]

Quote:

Originally Posted by freebird5825 Nothing voted on yet...but keep an eye on a recently proposed bill for a 2010 COLA fix...maybe, who knows what it may end up looking like. Keywords to search on : The Social Security COLA Fix for 2010 Act (H.R. 3536) Search Results - THOMAS (Library of Congress):: Last week, Rep. Carolyn McCarthy (D-NY) introduced legislation that, if passed, ensures retirees will receive a cost-of-living-adjustment (COLA) in 2010. Source: //www.myfederalretirement.com/public/487.cfm

Most recent update on a possible $250 "emergency" check for certain groups. Nothing is final yet.
No political intent with this post, just information.
No COLA likely, but $250 check for some retirees - Federal news, government operations, agency management, pay & benefits - FederalTimes.com