Surprise COLA!

[dixonge]

Although our pensions through TCDRS are technically fixed, each individual county or district that participates can initiate a cost of living adjustment. I did not know this until this year's benefit statement came out, indicating that both of my previous employers did so this year.

It's a fairly small adjustment (approx. 2.9%) but hey, I never expected to see it go up at all so it's a nice bonus. And thank dog for the standard deduction or we'd be teetering on the edge of the 22% bracket!

[Koolau]

Quote:

Originally Posted by dixonge Although our pensions through TCDRS are technically fixed, each individual county or district that participates can initiate a cost of living adjustment. I did not know this until this year's benefit statement came out, indicating that both of my previous employers did so this year. It's a fairly small adjustment (approx. 2.9%) but hey, I never expected to see it go up at all so it's a nice bonus. And thank dog for the standard deduction or we'd be teetering on the edge of the 22% bracket!

Megacorp over many years occasionally adjusted the pension though no official COLA was promised. All us old guys used to watch this and figured we'd be cut in at some point after we retired. Never happened. I think the last such adjustment was about 25 years ago now. Not even a "smell" since I retired.

Not only that, megacorp provided subsidized health insurance when I FIRE'd. But that was reduced quite a bit some years later. I'm still very thankful for the pension and the subsidized health care, but megacorp is saving a bunch of money by cutting back such things.

Heh, heh, the good news - what I lost on pension and health care - I'm more than making up with growth of megacorp stock I kept! I followed my own rule: If you find a company with evil, mean, greedy leaders AND pricing power - don't whine; buy their stock!

[jazz4cash]

Quote:

Originally Posted by Koolau Megacorp over many years occasionally adjusted the pension though no official COLA was promised. Not even a "smell" since I retired.

Same at my Mega. The oldtimers got used to a little bump now and then but I never had any expectations.

[jazz4cash]

Quote:

Originally Posted by Koolau Not only that, megacorp provided subsidized health insurance when I FIRE'd. But that was reduced quite a bit some years later. I'm still very thankful for the pension and the subsidized health care, but megacorp is saving a bunch of money by cutting back such things.

I got lucky with healthcare. They put a big chunk into the 401k in lieu of the retiree health benefit for those of us with <30 years. That chunk grew over time whereas the folks with >30 yrs that were grandfathered faced a dwindling benefit over the years.

[Koolau]

Quote:

Originally Posted by jazz4cash I got lucky with healthcare. They put a big chunk into the 401k in lieu of the retiree health benefit for those of us with <30 years. That chunk grew over time whereas the folks with >30 yrs that were grandfathered faced a dwindling benefit over the years.

I always liked the company provided benefit rather than being responsible for "results" in the market. The latter is the better way to really (potentially) come out ahead. The former is the way to feel relaxed upon entering FIRE.

As mentioned, megacorp messed with our benefits and degraded them somewhat. Still, the understanding that no catastrophic illness would bankrupt us was quite reassuring. I've proven to myself that I'm not cut out for making a killing in the markets, so I'd prefer a "semi-guaranteed" benefit vs a grab for the brass ring. But, YMMV.