Wednesday, July 27, 2011

Kick Um While There Down

Isn't this just the frosting on the cake

Plan to Reduce Retiree COLA Gets Clearer

Over the last two years mil­i­tary retirees and VA com­pen­sa­tion recip­i­ents have com­plained about the lack of a cost-of-living adjust­ment to their pay. As reported here, the issue was not polit­i­cal or even deficit reduc­tion; it was due solely to the fact that COLA is based on infla­tion as deter­mined by the pre­vi­ous year’s Con­sumer Price Index.

But, that may all soon change — right when retirees are look­ing for­ward to get­ting a COLA for the first-time since 2009. In an effort to reduce gov­ern­ment expenses, the Sen­ate is now con­sid­er­ing chang­ing the rules for how COLA is deter­mined. The pro­posed changes will likely result in reduc­ing the COLA in 2012 by up to .3 per­cent.

Tom Philpott reports that the new basis for COLA would be the Chain Con­sumer Price Index for All Urban Con­sumers (or C-CPI-U). Adopt­ing the Chain CPI to adjust enti­tle­ments has been rec­om­mended by every group look­ing for ways to address the fed­eral debt cri­sis.

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  1. Ask any accountant...depending on what you factor in, and how you do it, you make numbers say anything you want..

    IF this is how Congress wants to play the game, all non military government employees need to be held to the same standard.. that should rankle a few SEIU bigwigs

  2. Hell Grumpy lets shut off all the politicians. No pay, no benefits no nothing till they fix this problem. Mark my word the incumbents are F'ed. I am not voting for anyone that has held office prior to 2012.

  3. Even Posey has gotten non responsive.. Accessibly and BS replies to questions used to be his trademark..

  4. Hell, they tried this many years ago by removing food & energy from the COLA calculations. One would think the as buyer patterns shift to the less costly items the overall calculations would become skewed. What will they do when the public can no longer shift to lower cost items?

  5. Marine.. we heard about to some degree a few years ago... people will go first to the old modified field ration stuff..Hormel Beef Stew and chili, then to pet food..

  6. Yep, but once we reach the last level, COLA calculations will remain constant.


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