No COLA for Social Security Recipients - Montana Owners Club

ols1932 · 08-24-2009, 12:53 PM

Just heard on FNC that there will be no COLA for SS recipients for the next two years due to negative inflation (??). Check it out here.

Orv

NCFischers · 08-24-2009, 01:01 PM

Does this surprise anyone???

richfaa · 08-24-2009, 01:11 PM

That is true. There will be no COLA for anyone.SS, retired Fed,s Etc and it should come as no surprise. I am thankful we still have a pension.

dsprik · 08-24-2009, 01:31 PM

Just read about this this AM. Actually, there will be a net DROP in net pay as the Medicare premiums will be increased slightly while the COLA = $0.00. Apparently, they don't into account home values dropping like a rock and IRA negative values for the year???

Didn't read the specific article you are referring to Orv, but there seems to be a big push by some Congressmen to at least come up with a $150 lump sum for SSA people in light of this revelation... We'll see.

Red939 · 08-24-2009, 02:08 PM

COLA adjustment is for the increase in cost of living...there is no increase in the cost of living, therefore no COLA increase.

First thing the gov has done in months that makes sense.

dsprik · 08-24-2009, 04:02 PM

My State of Michigan (Public School Employee) pension guarantees me a 3% increase every year. And being in the same retirement pool as state judges and state police, those boys really knew how to protect their pensions... it is guaranteed by the State Constitution - regardless whether or not they were bond holders of any GM bonds (they claim they weren't, though) that took out so many other pensions. I realize that I am more fortunate than many.

My SSDI payments are nice, but whether they go up or down a few bucks a month doesn't change my lifestyle. $150 would pay my camping fee for the National Rally...

Art-n-Marge · 08-24-2009, 04:16 PM

At least there is a law that SS payouts cannot be decreased anymore.

Now that they're getting this not paying a COLA (Cost Of Living Adjustment) past us, I wonder how many bonuses will be doled out at the SS Administration?

Maybe they'll change to a PEPSI law (Pay Every Person Sans Increase) and never have to pay increases ever again.

H. John Kohl · 08-24-2009, 04:19 PM

I wonder if Congress will vote "NOT TO RECEIVE AN AUTOMATIC PAY RAISE".
I remember back in the 80s when they froze the pay for military but forgot to vote "not to receive their automatic pay raise." Yes that still burns me.

Delaine and Lindy · 08-24-2009, 04:32 PM

Oh well it always happens, and the Military will get cut also, just a matter of time. Maybe we need to get a SS Czar??? GBY.....

NCFischers · 08-25-2009, 01:09 AM

Red939,
I would consider a raise in Medicare premiums a raise in cost of living. Taxes are going up, utilities are more expensive, food cost, fuel cost, etc. All of these mean an increase in cost of living.

Countryfolks · 08-25-2009, 03:13 AM

All they have to do is change the basis of their computations and they can get any kind of answer they want. Figures lie, liars figure.

richfaa · 08-25-2009, 03:25 AM

Just so we understand the facts. These are 2008 numbers because the 2009 numbers have not yet been "officially" determined.

http://www.ssa.gov/OACT/COLA/latestCOLA.html

http://www.huffingtonpost.com/mark-m..._b_245538.html

http://www.bls.gov/news.release/cpi.nr0.htm

Might want to Google the CPI-W index also.

Countryfolks · 08-25-2009, 04:24 AM

Thanks for the info Rich. Everything went up except housing; -.5%; transportation, -15%; and energy, -28%. All under 'unadjusted 12 mos ended July 2009'. Overall was -2.7% unadjusted. I suppose it evens out with last years increase of ~5.6% caused by rise in energy.

Parrothead · 08-25-2009, 05:15 AM

the SS COLA is based on the CPI. As the law states now (I know THEY can change it), Medicare cannot increase more than the SS COLA.
Happy trails..........................

dsprik · 08-25-2009, 05:28 AM

Let me understand... Housing dropped -0.5%?????? A little more than that in my neighborhood...

Also, they are determining COLA only. In other words, how much it cost to buy something and they don't count our ability to purchase goods and services. Apparently after you buy it, they don't care what happens to the value of it - as reported by their own national standards of analysis above. The value of most 401Ks and homes dropped significantly. My ability to sell my car (asset) for liquid cash has been severely reduced. Major loss of jobs and foreclosures leaves a lot less cash out there for others to buy my assets. So not only is my asset value dropping, I am having a very difficult time converting what assets I do have into cash.

I now have less resources to purchase anything with. So what they are doing is double hitting us as we lose our savings and our assets and our purchasing power overall, they now essentially are saying that on top of that they are reducing (after medicare premiums) our income and the amount of cash us SS recipients have to "stimulate the economy" even further.

I have no idea where I got that logic from. I need some decaf...

richfaa · 08-25-2009, 07:02 AM

That's the way it is calculated. The more you read it and understand it the more questions you have.. There are things that are not included in the CPI-W index.?????? I guess I just can't see....the big picture......

In case the brain has not already shorted out or into buffer overload

asorb this

http://www.bls.gov/news.release/cpi.nr0.htm

That clears everything up

ole dude · 08-25-2009, 07:11 AM

All of this is know as "The Mushroom Effect " little citizens.

49merc · 08-25-2009, 09:39 AM

Rich,
Clear as mud! These people must not shop for groceries or anything else. What with repair labor cost increasing, increased sewer and water rates, increased garbage rates,etc., etc. our spendable money keeps decreasing every year. I just don't see a negative cost of living out there. Oh well, at least I woke up to another beautiful day in Oregon.

Bob

dsprik · 08-25-2009, 09:46 AM

Exactly, Rich. Seems to me we need another index, or another multiplier... We have the one that calculates how much it costs to buy the wide range (???) of basic products and services that the average American consumer (???) needs to buy to sustain oneself. I think that's what they are trying to accomplish with the CPI?

What we need IMHO is a SECOND factor that calculates the liquid asset level of the average consumer that is currently available to purchase these "products and services" used in the CPI.

My main thought here is that regardless of changes in the CPI, if only half of the consumers in the US (exaggerated for dramatic effect) for instance, can afford to spend cash at the same level that they spent last year, there is a serious problem. I am sure the average US consumer is NOT going to have the same ability this year (or they have changed their spending habits permanently), or same resources (credit dried up dramatically also) as they had last year to purchase these "goods and services".

I know some will say, well supply and demand will adjust for that. Maybe, but there will be a harmful lag time, and, as a note, supply and demand sure went out the window as far as the oil and gasoline prices go. Brokers control that - for now. Supply and demand does NOT go up $3 then down $2 in the same day. That's simply someone playing "poker" with our money.

Sorry, I could be way off base here. Just my rambling thoughts.

richfaa · 08-25-2009, 10:07 AM

All I know is that we will have less income next year. Don't know how much less yet But I figure 3 to 5 % less. so we will have to reduce our spending by the same amount. But..we have a income, we did not lose our home, we can still pay the bills and have 1.98 left over at the end of the month...Well maybe 1.93. Dave..We are going to have hit the mouse hard this winter..

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