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Which COLA inflation adjustment is the best
In response to a request from two Republicans in Congress, the Government Accountability Office studied hypothetical COLA levels over the 30 years from 2003 to 2033, using calculations liked to the Chained Consumer Price Index for All Urban Consumers (CPI-U), the CPI-E (the E stands for elderly) and the CPI-W (for Urban Wage Earners and Clerical Workers), which is the current standard; and found that the COLA would decrease by an average .25 percent per year if the Chained CPI-U were used instead of the CPI-W, and the total loss would top seven percent after 30 years. However, using the CPI-E as the COLA link, in contrast, would increase payouts by more than four percent over the same 30-Year period. For more details click here…
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