STRS and COLA

From Mario Iacone, June 16, 2009

One of the reasons Mr. Nehf and others at STRS justify COLA elimination/reduction is the likelihood of low inflation in previous years and for some time to come.

This is not a valid argument when directed toward the senior population and retirees.

INFLATION IS NOT THE GREATEST ENEMY OF RETIREES!

Health Care Costs Are!

Cost of Services Are!

Prescription Costs Are!

Nursing Home Costs Are!

Due to the reality of the normal aging process and a gradual deterioration of health, retirees have to spend more and more of their income for medical services and prescriptions.

Retirees are also forced to spend disproportionately more for services due to normal deterioration of physical ability with increase in age.

COLA IS ESSENTIAL TO MEETING THOSE COSTS!

Nursing home costs when dependently aged. COLA offsets the depletion of personal assets for such care so that maybe some of what it took a lifetime to save can be passed on to our children.