Quote Originally Posted by wombat2u2004 View Post
Well that isn't fair. Payments should be adjusted in line with inflation and the cost of living every six months. It should be done automatically.
Our CPI rates are worked out quarterly, and pensions are adjusted automatically every 6 months.
Pension payment adjustments should not need the approval of some govt lackey every time the cost of living goes up...it has to be linked to index figures.
You will see from the following chart how these index figures change...

COLAs (Cost of Living adjustments) are automatic. However, because of the formula used by the United States in computing the COLAs, there have been no COLAs for two years for either Federal employees or SS recipients. IIRC, food and fuel are not included in the COLA calulations, yielding an actual drop in the cost of living.

To steal a line from someone, there are lies, damned lies, and statistics. COLA calculation in the US fall into the third category.