Social Security COLA withheld

[duke98248]

And if the Health Care issue isn't enough to get you going, think about this one.

For the first time in history, Congress will not allow an increase in
the social security COLA (cost of living adjustment).
In fact, the Henry J. Kaiser Family Foundation predicts there may not be any COLA for the next three years. However, the per person monthly Medicare Insurance premium will be increased from the 2009 premium of $96.40 to
$104.20 in 2010 and to
$120.20 for the year 2011.
Let's send this to all seniors that you know and remind them NOT to vote for the incumbent senators and congressmen in the 2010 and the 2012 Elections.
And don't forget - CONGRESS GAVE THEMSELVES A PAY RAISE THIS YEAR...

My wife is disabled and on MediCare. Her current SS pays her premium with wee bit left over for medication. In 2011 she will be going backwards on costs. To put her on my insurance costs about $750.00 per month, plus the meds. Wouldn't be a problem under Health Care REform...... she would be deigned treatment. ........ oops, sorry guys and gals, gettin my dander up. This crap has got to stop.

[mercianbike]

The Cost of Living Adjustment (COLA) is determined each year by the loss in purchasing power due to inflation. In 2009 there has been no inflation therefore no COLA. It's as simple as that. In fact, there has been a "deflation" this year around 2.3% due to reduced costs of such items as gasoline. The Military Officers Association of America (MOAA) explains it this way:

Quote:

COLA in the Hole for 2011, Too?

Last week, we officially threw in the towel on any prospect for a 2010 COLA for Social Security, military/federal retired pay, SBP, and VA disability compensation recipients.

With inflation 2.3% in the hole through the first 10 months of the fiscal year, inflation would have to rise more than 4.6% in the next two months (the COLA is based on the July/August/September average) for there to be a 2010 COLA, and that’s not going to happen.

But this is the first time the nearly 50-year history of COLAs that there’s been negative inflation for the full year, and that sent us back to research how the COLA law deals with that event.

We know there won’t be a cut in retired pay, Social Security, etc. There just won't be a COLA.

But how about 2011? Does the "COLA clock" reset at zero, or do we start the new fiscal year in the hole by whatever negative number the CPI represents at the end of September?

The short answer is that it's a cumulative calculation, and we will, in fact, start FY2010 in the "COLA hole."

The law says the COLA is calculated based on CPI growth from the third quarter average to the next year's third quarter average. However, it specifies that the starting point for the calculation is the third quarter of the year prior to "the most recent adjustment..." So if there's no COLA in 2010, then the starting point for the 2011 COLA calculation still remains the third quarter of 2008.

So inflation will have to rise at least a couple of percentage points during the next fiscal year before the 2011 COLA clock will even start.

End Quote.

As far as Medicare Premiums, there was already a law covering about 75% of Medicare recipients that basically said that if there was no cost of living increase, there would be no Medicare premium increase. The House on Friday passed a bill covering the remaining 25% that the Senate will vote on this coming week.

As far as Congress giving themselves a pay increase this year, they received the same 5.9% COLA that many of us did on our pensions. They did, however, have the option to turn it down.

[johbren]

all I know is everything at walmart has went up. Id like to know why they think there is no inflation

[AlabamaNomadRider]

You can't convince me that the cost of things have not gone up. Maybe they are basing it on the price of gasoline alone. Who knows how the government figures ways to $crew the working man. Believe me I know something about the government as I spent a little over 20 years in the military and saw the same raw deal year after year. Postponed our raise that had always been given October 1 until January 1. This saved the government several million that year but the next year was short. So they only postponed it and didn't really save any money.

If congress and the senate got a 5.9 per cent pay increase and I got a 5.9 per cent increase. Then if I receive say $1000 per month then my pay would have gone up $59. Congress and the senate would have received a raise of at least $590 at the rate of pay of $10,000 per month. So a 5.9 per cent raise for the average person doesn't amount to much. But when you earn over $10,000 per month then your 5.9 per cent raise is a hell of a raise.

Of course I received a big lump sum $250 payment earlier this year. Then they don't give us a raise. I would rather for them to have stuck it up their a$$ and given me a raise. Of course I took the $250 as there was no option to return it and get a raise instead.

Yes, I say vote all the sorry sons out of office. The new ones we put in wouldn't be any better but it would have the old hanger on ones out.

[mercianbike]

For anyone interested, this is one of many links that explains how the Consumer Price Index is derived.

http://www.bls.gov/cpi/cpiovrvw.htm#item3

I would like a raise too. But at least I understand why I'm not getting one in 2010 and maybe not in 2011.

[Kawhead]

SURPRISE! SURPRISE!! SURPRISE!!!!

[AlabamaNomadRider]

I'm not trying to be a wise a$$ but if you can't take care of your older people that helped build this country. I will be 63 in November and have worked publicly since I was 15. I have paid in a lot of taxes through the years. It is difficult to get by and it certainly wouldn't hurt to give the seniors a little something to show they care, which I know they don't.

If the government would quit wasting billions of dollars on foolish things and giving money to countries that don't deserve it, there would be a little more money to do things with. Heck they don't even take care of the states like they should. They are too busy throwing money at Africa to help them with the AIDS problem and whatever. They are trying to buy friends and the people you help the most probably hate us the most. I spent three hardship tours in Korea which means without my family. Those were tough years and I didn't want to be there. The ironic part of that is, the Korean people didn't want us there. I saw many demonstrations protesting us being there. Would have loved to pack up and leave but couldn't do that.

The government can manipulate formulas to their benefit. If the formula was for the congressmen and senators to get a raise it would have been altogether different.

[Yellow Jacket]

COLA raise on your pension? I wish. I shoulda stayed in the Air Force for thirty instead of four!

[mercianbike]

Originally Posted by Yellow Jacket

COLA raise on your pension? I wish. I shoulda stayed in the Air Force for thirty instead of four!

Since I retired from the Air Force in 1981 with 25 years service, my pension has more than doubled thanks to Cost of Living Adjustments. However, my Lockheed Martin pension has remained the same this past 12 years even though inflation has gone up over 65% since 1997. This is an example of a federal vs. corporate retirement.

In all honesty, I feel extremely fortunate to have any retirement income at all. I'm sure there are many unemployed people out there wondering why retirees are discussing a pay increase when they have no job and no income at all. Same with those who had planned to retire on their 401K and had that pulled out from under them. These are the people who have a real grievance.

[cactusjack]

My employer has had a wage freeze for the past two years. No increases for anybody until the economy picks up.

[audiogooroo]

Originally Posted by cactusjack

My employer has had a wage freeze for the past two years. No increases for anybody until the economy picks up.

Same here. Last raise was at the beginning of 2008, nothing for 2009 and I don't see anything happening for 2010. October is the end of our fiscal year, so as we're evaluating the numbers, it's looking pretty ugly. :(" title="" border="0"/>

[AlabamaNomadRider]

Guess I was fortunate and was able to shift my money in my 401K and I made some money each year. Luckily I retired from Siemens before it really got bad. I didn't lose a penny in my 401K but I took it all and ran when I retired. I didn't want to take any chances on loosing what I had in it. I had a pension that Siemens paid for me and had enough in it to purchase my new '08 Nomad and an '08 Impala for my wife. Guess I am lucky.

I still don't understand with all the government waste why they can't give some sort of raise. They are cutting their own throats.

And yes, I retired from the military and that turns out to be one of the smartest moves I made in my life. I don't have to worry about prescription drugs or medical bills. Of course while I and others were in the military we made considerably less than people in the private sector. I guess in the end, it all works out.

I will survive without a raise, on my Social Security it would just be nice to have. Anyone could use a few extra dollars to pay their electric bill which is lots higher than it was last year. They added fuel cost to our bills and even though the price of a gallon of gas has gone down they are still collecting that.

[NRiderUSA]

I spent 8 years in the Air Force, got out went to college got on with Ollivetti who sold to ATV who sold to FDR who sold to DDS who laid everyone off when they aquired the company. (Over 8 years time)
I then worked for Siemens for 8 years they sold my division to Oce whom I worked for another 8 years for a total of 16 years.
A couple years ago they eliminated their retirement plan for new hires and anyone who's time plu age didnt add up to 62. I got lucky and made 63 so I still had the retirement plan unlike about 95% of the rest of the employees.
I got laid off in a reduction of forces about a year later and I was top paid and top seniority in my city... didnt matter. So Being the only one with the retirement in my city, the top paid in my City, and senior guy in my city... got me starting over again at 53.
Really sucks, I dont have another 25 years to start over and rebuild in.

Really bad part, I'm just on of the millions singing the same tune right now......