<html><body bgcolor="#FFFFFF"><div>Cool!</div><div><br></div><div>Assuming that military retirees are considered "Federal Retirees", at this rate . . . in a few years (6 or 7) . . . I should be off hamburger helper helper . . . I'll be able to throw away toilet paper after only one use, instead of reversing it and re-rolling it.<br><br><div>Seeya round town, Moscow.</div><div><br></div><div>Tom Hansen</div><div>Moscow, Idaho</div><div><br></div><div><span class="Apple-style-span" style="-webkit-tap-highlight-color: rgba(26, 26, 26, 0.292969); -webkit-composition-fill-color: rgba(175, 192, 227, 0.230469); -webkit-composition-frame-color: rgba(77, 128, 180, 0.230469);"><br></span></div></div><div><br>On Oct 28, 2011, at 3:33 PM, Tom Trail <<a href="mailto:ttrail@moscow.com">ttrail@moscow.com</a>> wrote:<br><br></div><div></div><blockquote type="cite"><div>
<blockquote type="cite" cite="">Visionaries: Good news for Federal
Retirees.</blockquote>
<div><br>
<br>
</div>
<div>Tom Trail<br>
</div>
<blockquote type="cite" cite=""> </blockquote>
<blockquote type="cite" cite=""><b>Sent:</b> Thursday, October 20, 2011
5:04 AM<br>
<b>Subject:</b> 2012 COLA</blockquote>
<blockquote type="cite" cite=""> </blockquote>
<blockquote type="cite" cite="">A 2012 COLA to be applied to CSRS
and FERS annuities - the CSRS COLA will be 3.6% and the FERS COLA
will be 2.6%.</blockquote>
<blockquote type="cite" cite=""> </blockquote>
<blockquote type="cite" cite="">The COLA adjustment of annuities is
discussed in Chapter 2 of the CSRS and FERS Handbook, found at <a href="http://www.opm.gov/retire/pubs/handbook/C002.pdf"><a href="http://www.opm.gov/retire/pubs/handbook/C002.pdf">http://www.opm.gov/retire/pubs/handbook/C002.pdf</a></a> .</blockquote>
<blockquote type="cite" cite=""> </blockquote>
<blockquote type="cite" cite="">Cost-of-living adjustments (COLAs) for
the Civil Service Retirement System (CSRS) and the Federal Employees
Retirement System (FERS) are based on the rate of inflation as
measured by the Consumer Price Index for Urban Wage Earners and
Clerical Workers (CPI-W), which is published monthly by the Bureau of
Labor Statistics. As applicable to CSRS and FERS, 5 U.S.C.
8331(15) provides that "'price index' means the Consumer Price
Index (all items - United States city average) published monthly by
the Bureau of Labor Statistics." However, the BLS no longer
publishes a CPI exactly as described in that definition. Accordingly,
the OPM uses the CPI for Urban Wage Earners and Clerical Workers
(CPI-W), as published monthly by the BLS, selected to be the index
most similar to the statutory requirement. The CPI-W is also used by
the Social Security Administration as their indexing base</blockquote>
<blockquote type="cite" cite=""> </blockquote>
<blockquote type="cite" cite="">COLAs for both CSRS and FERS are based on
the percentage increase in the CPI-W for the most recent third quarter
(July-September) compared to the most recent quarter upon which an
increase was based. If consumer prices as measured by the CPI-W
do not increase from the third quarter of one year to the third
quarter of the next year, there is no COLA for annuities paid under
CSRS or FERS. For example, from the third quarter of 2008 to the third
quarter of 2009, the CPI-W fell by 2.1%. Therefore, there was no COLA
under either CSRS or FERS in December of 2009 (which would have been
reflected in the January checks). The third quarter of 2008 will
be the base to which the third quarter of 2010 will be
compared.</blockquote>
<blockquote type="cite" cite=""> </blockquote>
<blockquote type="cite" cite="">Under both CSRS and FERS, the annual COLA
increase, if any, is made for annuities effective on December 1,
appearing in the payment made the first business day of
January. Also, if an individual retires during the year
immediately preceding a COLA, the first COLA is prorated.</blockquote>
<blockquote type="cite" cite=""> </blockquote>
<blockquote type="cite" cite="">However, there are a couple of
differences regarding COLAs under CSRS and FERS.</blockquote>
<blockquote type="cite" cite=""> </blockquote>
<blockquote type="cite" cite="">CSRS annuitants receive a COLA that is
equal to the percentage change in the CPI-W. However, under
FERS, the basic retirement annuity is fully indexed if inflation is
under 2% per year and partially indexed if inflation exceeds
2%:</blockquote>
<blockquote type="cite" cite=""> </blockquote>
<blockquote type="cite" cite=""> If the
CPI-W increases by up to 2%, then the FERS annuity increases by the
same percentage.</blockquote>
<blockquote type="cite" cite=""> If the
CPI-W increases by 2% to 3%, the FERS annuity increases by
2%.</blockquote>
<blockquote type="cite" cite=""> If the
CPI-W increases by more than 3%, the FERS annuity increases by the
rise in the CPI-W minus one percentage point.</blockquote>
<blockquote type="cite" cite=""> </blockquote>
<blockquote type="cite" cite="">All CSRS retirees and survivors receive
COLAs. However, under FERS, COLAs are applied only to annuities of
retirees who are age 62 or older, individuals who retired under
specified special retirement provisions (such as law enforcement
officers and fire fighters), individuals who retired by reason of
disability, and to survivor annuitants. Other FERS retirees receive no
COLAs while they are under age 62.</blockquote>
<blockquote type="cite" cite=""> </blockquote>
<blockquote type="cite" cite=""> </blockquote>
<blockquote type="cite" cite=""> </blockquote>
<blockquote type="cite" cite=""> </blockquote>
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<blockquote type="cite" cite=""> </blockquote>
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<blockquote type="cite" cite=""> </blockquote>
<div><br></div>
<div><br></div>
<x-sigsep><pre>--
</pre></x-sigsep>
<div>Dr. Tom Trail<br>
International Trails<br>
1375 Mt. View Rd.<br>
Moscow, Id. 83843<br>
Tel: (208) 882-6077<br>
Fax: (208) 882-0896<br>
e mail <a href="mailto:ttrail@moscow.com"><a href="mailto:ttrail@moscow.com">ttrail@moscow.com</a></a></div>
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