Spared from Pension Hikes

Spared from Pension Hikes

  • By Tammy Flanagan National Institute of Transition Planning
  • December 13, 2013
martellostudio/Shutterstock.com

I’ve recently conducted several webinars, and each included a question-and-answer period at the end. But there were many more questions than I had time to answer. So I thought I’d address some of them here.

In the current fiscal environment and pressures of sequestration, how likely is it that changes will be made to the federal retirement rules and benefits in the next year or two?

I don’t like to be the one to say “I told you so,” but I did. I keep my optimism that Congress won’t make too many changes to the retirement benefits of federal employees since this group represents such a large voting population and federal employees are well-represented in in the political system by a variety of labor unions and associations. Continue reading “Spared from Pension Hikes”

Does President Obama Want to Cut Social Security by 3 Percent?

https://i2.wp.com/www.sanders.senate.gov/images/structure/bg-header.jpgDoes President Obama Want to Cut Social Security by 3 Percent?

Monday, 17 September 2012 09:56 By Dean Baker, Truthout | News Analysis

Source: Truth-out.org

September 17, 2012

That is a pretty simple and important question. Unfortunately, most voters are likely to go to the polls this fall without knowing the answer.

If the backdrop to this question is not immediately clear, then you should be very angry at the reporters who cover the campaign. One of the items that continuously comes up in reference to the budget deficit is President Obama’s support for the plan put forward by the co-chairs of his deficit commission, Morgan Stanley director Erskine Bowles and former senator Alan Simpson. On numerous occasions, President Obama has indicated his support for this plan.

One of the items in the Bowles-Simpson plan is a reduction in the annual cost-of-living adjustment of roughly 0.3 percentage points. This would be accomplished by using a different index that, by design, would show a lower measured rate of inflation. It is important to recognize that this is an annual cut that would accumulate over time. After a retiree has been receiving benefits for ten years, the cut would be 3.0 percent; after 20 years. it would be 6 percent. If a typical retiree lives long enough to get benefits for 20, years the average benefit cut over their years of retirement would be 3 percent.

Continue reading here.