January salary increase, retirees COLA looks good

Federal, military, and social security retirees have five months left to cut the cost of living. From January they expect a 3% increase in benefits. It’s a policy-free appeal based on the ups and downs of the market. This year the COLA was 1.3%.

Federal employees are on the way to a raise that could range from 2.7% to 3.2%. The final amount will be both a political and a budgetary judgment. This year they got a 1% increase.

The January COLA for retirees is based on the rise in inflation through the end of September. You can get a gut feeling by watching changes in gasoline prices as you refuel or a rise in prices at the grocery store. The official number will be published in October.

The federal salary increase in January is based on political and budgetary judgments. The Biden government expects an increase of 2.7%. But Congressional Democrats from states and districts with large numbers of civil servants proposed a 3.2% increase in January, with 1% being used for local wage adjustments. It could be higher if inflation rises between now and September. The retirees received a COLA of 1.3% last January.

Under the scheme, people under Social Security and the old CSRS (Public Service Retirement System) program – the majority of current retirees – receive the full COLA no matter how it turns out. However, those on the Federal Employees Retirement System (FERS) who replaced the CSRS program would receive a Diet COLA that is 1% below the actual increase in CPI.

When it comes to pay, it’s not about whether a civilian employee will get a raise, but how big it will be. The White House supports a 2.7% increase in January. House and Senate Democrats have proposed a 3.2% increase, one percentage point of which will be used to adjust the location. The Feds received a 1% hike in January this year.

Although often confused, there can and are major differences between a federal raise and a COLA for retirees. When Congress receives an increase, many members refer to it as a cost of living to catch up, although the final amount is often a political call with little or no relation to the rate of inflation, as measured by the Bureau of Labor Statistics Index-W consumer price. This is a city-to-city pulse check by the Department of Labor on the prices of a cart. Groups representing retirees, such as the National Active and Retired Federal Employees (NARFE), say the government should use the CPI-E – for the elderly – which accounts for higher retirees’ costs for things like health care and prescriptions. While both CPI indices measure food, beverages, housing, clothing, transportation and costs for education and recreation, the CPI-E gives more weight to medical costs. Most retirees would benefit from this in the form of higher COLAs.

Speaking of pensioner groups: The National Association of Federal Employees in Retirement is 100 years old this year. The vast majority of federal employees and retirees live and work outside of the Washington metropolitan area. Therefore, local NARFE members have gone to great lengths to let workers, retirees and neighbors know the importance of Uncle Sam’s presence in their communities. Particularly lined centers across the Beltway like Ogden, Utah and Huntsville, Alabama. Or anywhere with a military base, VA hospital, IRS, or postal service center. Or a federal prison that might be the paycheck generator in the community. How big is the federal presence? Long-time NARFE member Linda Wallers from Vancouver, Washington, and other NARFE members of the US state Washington are pleased about this proclamation from Governor Jay Inslee (D-Wash.). It is one of many from across the nation:

I am pleased to extend my warmest greetings to everyone who is celebrating the centenary of the National Association of Active and Retired Federal Employees (NARFE).

The NARFE should take pride in the work it has done over the past 100 years to defend and advance the retirement benefits of civil servants serving the United States, including valuable guidance and timely resources. NARFE is a leading voice in Washington State and across the country for the federal community.

Washingtoners rely on more than 67,000 federal employees to carry out the vital work of the federal government, including civil defense employees who support and equip the United States Armed Forces. Doctors and nurses who look after veterans; Cybersecurity professionals who protect critical infrastructure and respond to emerging threats; Pandemic response scientists and researchers developing new cures for disease; Federal law enforcement and intelligence officials protecting the United States from domestic and foreign threats; Prosecutors and judges who obey the law; Prison guards who ensure safety and security; Postal workers who keep communities connected and boost the economy; Air traffic controllers and airport security guards protecting our skies and our travelers; Land administrators who protect and maintain our national parks, national forests and public states; Financial agents who ensure the United States has the resources to perform critical functions; and scientists, engineers and specialists who protect the air we breathe and the water we rely on for drinking and recreation.

Please accept my best wishes for a happy holiday and many more years in which federal employees and retirees will find wise advice as they make critical decisions about their performance and gain confidence in a secure future.

– Very true to you, Jay Inslee, Governor

Almost useless factoid

By Adrian Dannhauser

The total weight of all the bones in your body depends on how much you actually weigh. Your bones make up about 15% of your total body weight. For example, if you weigh 180 pounds, your bones weigh about 27 pounds.

Source: Spine Universe