Retirees Due a 5.7 Percent COLA
Federal and military retirees are looking at their biggest cost of living adjustment in years. Senior Correspondent Mike Causey says the big jump in inflation in...
Retired federal and military personnel, and people who get collect Social Security benefits are inching closer to an automatic January cost of living adjustment worth at least 5.7 percent.
This time last month, the projected 2009 COLA for retirees was 4.5 percent, but living costs in June jumped higher than most people expected. That, in turn, caused a near-record one month jump in the Consumer Price Index.
The COLA which, on a percentage basis, dwarfs the size of the pending federal pay raise, is the result of a big 1.1 percent jump last month in the Consumer Price Index. The CPI is the measure Uncle Sam uses to determine the average rise or fall of prices for a selected market-basket of goods that includes things like food, health insurance and gasoline prices. For an excellent summary of the CPI, by NARFE’s Jill Crissman, click here.
COLAs for that group, which takes in one in every six Americans, are designed to keep up with inflation. The actual size of the 2009 raise, which will be settled in mid-October, is based on the Consumer Price Index. The CPI measures the rise in inflation from the current third quarter (July, August and September) over the third quarter of the previous (2007) year.
For an explanation of the CPI and the retiree COLA, click here.
Because most of the people eligible for the COLA increase are under Social Security, Congress and the White House don’t dare tamper with it. In that respect it is very different from the federal pay raise. That final figure won’t be known until the end of the year, but it is likely to be 3.9 percent plus a locality pay adjustment. For the latest on the white collar federal pay raise, click here.
Nearly Useless Factoid
The largest and most comprehensive collection of microscopes in the world is at the National Museum of Health and Medicine on the campus of Walter Reed. As impressive as that is, they still get asked (often) if they have anything… uh… left over from John Dillinger. Ahhh, tourists.
To reach me: mcausey@federalnewsradio.com
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