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.
Read more: http://militaryadvantage.military.com/2011/07/plan-to-reduce-retiree-cola-gets-clearer/#ixzz1TLMsVgU8
MilitaryAdvantage.Military.com
Ask any accountant...depending on what you factor in, and how you do it, you make numbers say anything you want..
ReplyDeleteIF 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
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.
ReplyDeleteEven Posey has gotten non responsive.. Accessibly and BS replies to questions used to be his trademark..
ReplyDeleteHell, 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?
ReplyDeleteMarine.. 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..
ReplyDeleteYep, but once we reach the last level, COLA calculations will remain constant.
ReplyDelete