YOU'RE ON YOUR OWN

"... ..COLAs have been growing at record lows levels recently, averaging just 2.47% a year since January 2000. That’s well below the pace of inflation for certain expenditures"

Like the Dos Equis man, we don't often start an article with a quote. But when we do we like to point out the flaw in the quote. This one should have read "inflation for certain expenditures that count." 

Food and energy ought to bubble to mind without much prompting. Aside from rising prices and lagging COLAs, that's not the only thing going on in the COLA world these days.

Three years ago New Jersey jumped into the fray by eliminating its COLA for retirees. It's no secret that many states underfunded their plans during the good times only to have the curtain jerked aside when the wolf along with the bad times showed up the the door of these entities

Here's a quote from New Jersey Governor Chrisitie back then.

“Many states are reducing pension liabilities by lowering or eliminating cost of living adjustments (COLA), or eliminating COLAs for current and future employees. For example, Colorado reduced its 2010 COLA from 3.5% to 0% with a rate of 2% starting in FY2011. Minnesota reduced COLAs from 2.5% to 1-2% depending on the fund, and South Dakota made a 1% reduction in 2010 with future years COLAs based on investment performance.”

President Obama did everything in his power during his first term to set the stage when he froze wages for federal workers and COLA increases for federal retirees for two years. And don't be boondoggled by the cooked up CPI numbers the Federal Reserve tosses around. They're about screwing retirees and anyone on COLAs as much as about revivifying an economy.

And don't count on the courts to save your retirement bacon. A physician-client who provides medical care to police and fire officials in his city, not a small one to be sure, that over the years police have warned him repeatedly, more so now than ever: They cannot protect their citizenry. 

As one sergeant with more than 20 years experience put it, the client says, "You're really on your own."

That's especially good advice for your retirement planning. 


http://burypensions.wordpress.com/2011/06/27/winning-the-cola-war/#ixzz32mCKf1ta

http://blogs.marketwatch.com/encore/2014/05/22/states-cut-colas-for-public-pensions/

http://www.marketwatch.com/story/dont-let-inflation-crack-your-nest-egg-2014-05-24?dist=tbeforebell