Retiree COLA Roller Coaster: Going Up.

Although federal workers face at least one more year without a pay raise, government retirees are cautiously looking forward to a cost of living adjustment of around 3.3 percent in their January checks. That COLA, if it holds up, would be the first inflation-catchup federal, military and Social Security retirees have had since they got a 5.8 percent increase in 2009.

The actual amount of the 2012 COLA won’t be known until mid-September. The raise could be higher if inflation creeps up this month and in September. It would be less if living costs drop between now and the end of September.

By law, retirees are supposed to get COLAs to match the rise in inflation as measured by the Bureau of Labor Statics Consumer Price Index. But for the past few years, inflation has been flat and there were actually months when living costs dropped. Result: No retiree COLA in 2010 or 2011. That despite the fact that health insurance premiums for retirees (and workers) have been going up. And up.

In recent months, there has been back-and-forth inflation. The January COLAs for retirees are based on the rise (if any) of the CPI from the third quarter of the previous year to its level for the current year. The third quarter measuring period is July, August and September. So that means there are still two months ( August and September) left in the countdown.

Retire and Get The COLA?

Many feds, fed up with the pay freeze, have indicated they may retire over the next few months if there is a retiree COLA in January. It’s a great plan with one flaw: In order to get a COLA intended for retirees, you must be retired while the inflation is taking place. The COLAs are pro-rated. David Snell of the National Active and Retired Federal Employees says that individuals who retired in June will get one half (6/12ths) of the January COLA. If you retired last month you will get even less and if you retire this month, less than that. Here’s how it works:

Stay tuned because the amount of the January COLA could change — up or down — dramatically between now and the end of September.

Suzanne Kubota Fan Club

Friends and coworkers of Suzanne Kubota met Wednesday evening to celebrate her life with a Shijuukunichi ceremony. Friends and family members gather, 49 days after losing a loved one, to say farewell and remember the departed with stories and laughter. There were a lot of both. Federal Drive co-host Amy Morris organized it and the company paid for it. Very nice.

Suzanne did the very popular Nearly Useless Factoid feature, and edited this column and did so much more. She had a lot of interaction with listeners and readers and she loved you guys with a passion. The fact that we had a touching Japanese ceremony in a Mexican restaurant (and mostly laughed all night) would have pleased her greatly. From personal experience I am sure she would have edited some of the speeches. Especially mine.

Anyhow, we miss her and — if you were a fan — we wanted you to know that you were there with us!

To reach me, mcausey@federalnewsradio.com

NEARLY USELESS FACTOID

“Dangling modifier” was once used as a slang expression to describe a single ear piercing. A University of North Carolina linguist posits the term quickly died out because it was too clever, according to an article in Slate. Her research indicates that the slang terms with the most longevity are short, reflect social judgment or acceptance, and often involve back-of-the-mouth noises, all of which explains the ubiquity of “cool.”

MORE FROM FEDERAL NEWS RADIO

OMB mandates 5 percent cut to 2013 budgets
Agencies must submit fiscal 2013 budget requests that cut at least 5 percent in discretionary spending compared with this year. Agencies must also submit versions of their 2013 budgets with options for cutting at least an additional 5 percent, or a total of at least 10 percent, below discretionary spending for this year.

USPS puts cuts to labor on bargaining table
The Postal Service and its biggest unions are gearing up for a battle as they begin contract negotiations today.

Copyright © 2024 Federal News Network. All rights reserved. This website is not intended for users located within the European Economic Area.