Shows & Panels
- The 2014 Big Picture on Cyber Security
- AFCEA Answers
- Ask the CIO
- Building the Hybrid Cloud
- Connected Government: How to Build and Procure Network Services for the Future
- Continuing Diagnostics and Mitigation: Discussion of Progress and Next Steps
- Federal Executive Forum
- Federal Tech Talk
- The Future of Government Data Centers
- The Future of IT: How CIOs Can Enable the Service-Oriented Enterprise
- The Intersection: Where Technology Meets Transformation
- Maximizing ROI Through Data Center Consolidation
- Moving to the Cloud. What's the best approach for me
- Navigating Tough Choices in Government Cloud Computing
- The New Generation of Database
- Satellite Communications: Acquiring SATCOM in Tight Times
- Targeting Advanced Threats: Proven Methods from Detection through Remediation
- Transformative Technology: Desktop Virtualization in Government
- The Truth About IT Opex and Software Defined Networking
- Value of Health IT
- Air Traffic Management Transformation Report
- Cloud First Report
- General Dynamics IT Enterprise Center
- Gov Cloud Minute
- Government in Technology Series
- Homeland Security Cybersecurity Market Report
- National Cybersecurity Awareness Month
- Technology Insights
- The Cyber Security Report
- The Next Generation Cyber Security Experts
Shows & Panels
Is it 'Jaws' or 'Sharknado' for retirees?
Thursday - 8/29/2013, 2:00am EDT
Or can they?
Short answer: Yep!
Of all the legislative threats facing active/retired feds, the least visible (and worst) is probably the most likely to happen to them. A lobbyist compared it to an alligator lurking in a deep, dark swamp. "All you can see are the eyes, until it's gotcha!"
Get the picture?
This creature from the black lagoon is called the "chained CPI." If it were used to determine future cost-of-living adjustments for retirees, they would get slightly smaller raises each year. Nothing you would notice at first, then, wham!
Many members of Congress, and the White House love it. Switching to the chained CPI to determine future inflation-triggered raises for retirees would, over time, save the government billions of dollars.
Experts say the new measure, if it becomes law, would slowly but surely reduce the value of each future COLAs for retirees. By some estimates, switching to the chained CPI to calculate retiree living costs would trim about $3 per month off the likely 2014 rise in Social Security payments. Over a decade, the slightly smaller chained-CPI raises would total about $30 less per month than under the current CPI system. Because their annuities are generally higher than Social Security benefits, the impact on federal-postal-military retirees would be greater. All would continue to get COLAs, but they would be smaller.
Groups like the National Active and Retired Federal Employees and AARP are dead set against the chained CPI. They say retirees have sacrificed enough, and that switching the way inflation is measured would hurt retirees because it doesn't take into account certain realities, like their higher medical costs.
Each side in the chained CPI argument says understanding it proves they are right.
By far, most of the comments we've gotten — as you would expect from a largely federal audience — are anti-chained CPI. And they've been good arguments from people who signed on, believe they had a contract with Uncle Sam and don't expect him to change the rules now.
But there are some who see it another way. Here are a few:
- "I am a dedicated federal worker, and I am also a dedicated U.S.
citizen and, lest we forget, a long-time taxpayer. I understand the concept of
the chained CPI and while I must disagree with some of the assumptions, I think
anything that would save so much money at such a slight cost to retirees, is worth
trying. Let's give it a try. I'm retiring Dec. 31. Bring it on!" — Will
With The Air Force
- "The chained CPI makes as much sense as other things we have tried. I have a lot of problems with the BLS (Bureau of Labor Statistics) method of measuring inflation and with its market-basket of good. However, the current system appears to be overstating inflation, therefore producing overly generous retiree COLAs." — Roger F.
NEARLY USELESS FACTOID
Compiled by Jack Moore
Think you've seen an advertisement for just about everything? Think again. Many popular brands don't do paid advertising. Among the household names on the no- advertising list: Krispy Kreme donuts, Jiffy's Muffin Mix and Rolls-Royce.
(Source: Huffington Post)
MORE FROM FEDERAL NEWS RADIO
New rules set
veteran, disability hiring benchmarks for contractors
The Labor Department unveiled two final rules Tuesday requiring federal contractors to establish clear-cut annual benchmarks for hiring veterans and people with disabilities. The contractors will have to keep detailed records of applicants and hires.
Agencies' FY 2015 budget
planning 'tied up in knots' by uncertainty
Agencies are already planning for their 2015 budgets, and will submit preliminary plans to the Office of Management and Budget next month, even as widespread budget uncertainty bedevils the federal government.