Cost of Living Calculator and Your COLA
We all know that the cost of living has increased since our retirement. Ever wonder how much is needed to buy today what you could when you retired? One of our members used the CPI Inflation Calculator to determine his loss of purchasing power. Compared to when he retired, it would now take $153 to purchase what he did back in 2003 for $100. If you would like to determine your loss of earning power since retirement, you can use the following government website: www.bls.gov/data/inflation calculator.htm
The Select Committee on Pension Policy (SCPP) will be meeting for the next few months to make recommendations to the State Legislature about possible changes/improvements to the DRS retirement plans. When they recommended to the legislature this last session that TRS and PERS Plan 1 members be given a 3% COLA, that is what the legislators agreed to. The recommendations from this Committee are usually the fallback position when COLAs are discussed during a Legislative session. In the spring of last year, everyone thought that a 3% COLA would be a "fair" number. As it turned out, inflation began in earnest after that and shook the boat. This year, we will not ask for a specific number for a COLA but will ask them to tie it directly to the consumer price index for the Seattle metropolitan area.
What You Can Do:
Contact the state.acturary@leg.wa.gov or the leaders of the Select Committee for Pension Policy (SCPP), Chair Representative Drew.Stokesbary@leg.wa.gov and Vice-Chair Senator Steve.Conwa@leg.wa.gov.
Let them know how a lack of a COLA has affected you and your family. Property taxes, medical, food, and other costs have gone up considerably. Maybe you had an unexpected repair (roof, water damage, etc.) or needed to replace a major item at your house. Give them your story, that is one way that you can help us make a difference as we work to get a needed COLA.
