2018 COLA Watch: Forecasted 2.2% Might be in Jeopardy
As explained in a post on fedsmith.com by Michael Wald, public affairs consultant and writer and former U.S. Department of Labor official, the 2018 Social Security Cost of Living Adjustment (COLA) story is turning into a good news/not-as-good-as-expected news situation. The good news, of course is that an adjustment north of last year’s .03% is in the offing; however, based on the most recently released CPI numbers, the likelihood of an originally foretasted 2.2% bump appears to be diminishing. Wald’s article takes a look at the composition of the CPI numbers and how they affect COLAs, and warns about the potential delay in a final adjustment number in the event of a government shutdown at the end of September. Read his article here…
Note also that COLAs are one of the prime components of AMAC’s Social Security Guarantee, a legislative framework advanced by the Association as a path toward resolution of the long-term Social Security solvency issue. This multi-part approach, designed to achieve Trust Fund solvency without a raise in taxes, includes a provision that guarantees a 3% to 4% COLA for lower earners, as well as a minimum adjustment for all others. Learn more about AMAC’s Social Security Guarantee here…
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