Federal Drive

What does a Chained Consumer Price Index mean for COLAs?

A reduced COLA may be part of the debt ceiling negotiations. Arthur Stein is a certified financial planner and he tells you what you need to prepare for.

Federal News Network Staff

July 15, 2011 10:31 am

< a min read

wfedstaff | June 4, 2015 8:29 am

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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.