If you think losing $30,000 over 10 years is bad.....check out the FIFTEEN YEAR IMPACT!

From John Curry, April 20, 2012

And discover that you now have lost $60,000 with that 2% COLA (supported by STRS Board with their vote yesterday) vs. your old 3% COLA. If you have difficulties comprehending this table please ask and I will help.

John

FIFTEEN YEAR COLA LOSS PROJECTION

Column A shows what is received with current 3% COLA.

Column B shows what is received with one year COLA Suspension and then 2% COLA for the following years.

Column A - B [A minus B] shows how much is lost each year if the new plan is adopted.

(Click image TWICE to enlarge.)

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A - B shows a LOSS of $60,000 after fifteen years.  That is $744,000 - $684,000 = $60,000.

OR

ADD all the YEARLY LOSSES in Column A-B to obtain the same figure, $60,000.