Cost of Living Increase

[Scout333]

For those who have thought about retiring this year to get the 2012 cost of living raise (3.5%)- There is a problem with that plan-
From Mike Causey's column-Jim S., a plan-ahead guy asked the following question: "...if I was to retire this year would I get the COLA in January like all the rest do, or do I have to wait a year? And that leads to another question. In what month should a person retire to get the COLA?"

It's a good question and I know I know the answer, but I never can remember what it is. So I asked David Snell who does know the answer. He's Director of Retirement Benefit Services for the National Active and Retired Federal Employees Association. Here's what he said:

"...Assuming the listener/reader is retiring under CSRS, since there is no COLA payment for a FERS retiree until age 62, if he retired this month (June) he would get 6/12th of any COLA payable in January 2012. To get the full COLA a CSRS retiree must be retired a whole year."

Dang it!

 

[EW_ret]

I believe the correct answer is they would receive 5/12 of the January 2012 COLA, if they retired on June 30, 2011. The 2012 COLA year began on December 1, 2010 and goes to November 30, 2011.

 

[nnuut]

I'm not sure we will even get a COLA in 2012, AGAIN!
http://www.narfe.org/departments/home/articles.cfm?ID=942

 

[EW_ret]

The Cost of Living (COLA) so far is +3.46% through May 2011. In order to get no 2012 COLA at all, either the CPI-W would have to average -3.46%, or more, over next four months, or the President could stop the COLA increase. This second possibility is more likely. If not stopped, I believe the 2012 COLA will be +3%, or more.

 

[nnuut]

The Cost of Living (COLA) so far is +3.46% through May 2011. In order to get no 2012 COLA at all, either the CPI-W would have to average -3.46%, or more, over next four months, or the President could stop the COLA increase. This second possibility is more likely. If not stopped, I believe the 2012 COLA will be +3%, or more.

I surely hope so, but you know there is no inflation!:laugh:
EW if you say we will probably get 3% or more, I pay attention cause I know how thorough you are, thanks.

 

[nasa1974]

For those who have thought about retiring this year to get the 2012 cost of living raise (3.5%)

Not going to be a show stopper for me. Retiring somewhere between now and 6/1/2012.

 

[Buster]

CSRS, just got a 1.7% increase ...01/02/2013

That allows my take-home to about to break even with all the other increased withholdings.

 

[nnuut]

CSRS, just got a 1.7% increase ...01/02/2013

That allows my take-home to about to break even with all the other increased withholdings.

I'm gonna clear almost $40 a month, WOHAAAA!!!! I'm in the money now!
That means there is no inflation.:laugh:

 

[nasa1974]

My COLA will be less than $40 a month. That's not enough to pay for a tank of gas. But it is better than nothing.

 

[Rustynutt]

It took nearly my entire career to feel that way. Now, the feeling of getting out with the shirt on my back, will take anything that comes my way. The energy expended to get upset and angry is just too much anymore. There's a trout in a stream somewhere just laughing to themselves, thinking about my plans to put them into a frying pan.