What does a Chained Consumer Price Index mean for COLAs?

Friday - 7/15/2011, 10:31am EDT

Arthur Stein, certified financial planner

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One of the ideas being considered in the debt limit talks is changing the formula that calculates cost-of-living adjustments for retirees. The proposal calls for a switch to a Chained Consumer Price Index to measure inflation. Arthur Stein is a certified financial planner with SPC Financial in Rockville, Maryland. He joined the Federal Drive to discuss what that change would mean for federal retirees.