Prepare for the 0% FERS Pension COLA

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[waynemcharpentier]

thanks for all the info dear friend, you have help me shape my plans over the time i have spent with you. PLEASE keep up all the good work here and in your private practice! It's all worth it to us! Thank you! BTW you always look sharp in your suits. God Bless.

[faustogonzalez]

Awesome info, I get it very clear. Thanks

[gregthomas]

Pension annuity plus the supplement bridge and a healthy TSP you will be fine.

[Zwoman]

Let's get off the diet and get a full increase-all feds should be treated comparably. TSA is a bust on so many levels.

[roachtoasties]

Year over year for the month ending in March is 5%. I haven't heard anyone predicting year over year toward the end of summer being zero. There would need to be some hefty price declines (negative inflation) to offset the increases in the months before.

[Life-Is-Short]

I just read an article where the author proposed a 3% COLA.

[JuanMartinez-knqs]

Thanks. The video did help understand. Did not know that it was compared to the 3rd quarter of the previous year

[stellah]

Can you explain Fers8? Is my retirement still 20 x 71, 000 x 1% ? If I retire at 60 with 20years service.

[adpreterist]

Special Provision Employees receive cola because their are forced to retire before 62. For example Air Traffic Controllers are forced out at 56.

[stringbeans]

You don't get cola at 60 but you get supplement.

[maryhollaway]

Inflation will increase 10% by October. That's my guess.

[aaront]

That makes no sense just because inflation is lower than last year doesn't mean that costs are lower it simply means it's rising slower.

[thomasshreve]

Thank you for the clarification. I thought COLA was predicated on how much inflation rose during the current year (each year establishes a new baseline) rather than year over year. My assumption was there could be several years of high, but declining inflation (e.g. 10%, 8%, 7%, etc), and a COLA would be established to account for the reduced buying power in each year. If I understand you correctly, if there was double digit inflation of 12% in year one, 11% in year two, and 10% in year three, there would be no COLA in years two and three since inflation was lower (but still very high) compared to the previous year, even though buying power was eroded by approx 21% in years two & three.

[elenaroukhadze]

To make a long story short: it sucks working for Uncle Sam!

[celticmco]

Other Fed blogs are predicting maybe 2%; will not know until October so this is all just speculation.