LOSS of INCOME due to COLA CUTS

From Mario Iacone, April 9, 2012

COLA CUTS - $$$$$

While reviewing the following chart, please keep in mind that COLA ACCUMULATES YEARLY.

THIS YEAR'S COLA increases your pension this year and every future year.

Also, if you have any questions with the following figures, please ask STRS to review them for accuracy.

COLA CUTS are a SIGNIFICANT REDUCTION IN FUTURE PENSION BENEFITS

PLEASE REVIEW THE CHART [Click to enlarge]

Lifetime income is substantially reduced with any yearly reduction in COLA.

The above estimates only represent cuts from reducing the COLA to 2%.

Income lost by a one year COLA SUSPENSION is NOT INCLUDED in the figures. To factor the COLA suspension, multiply your COLA by a given number of years and add it to the above.

For example, if your Yearly COLA is $1,000. 5 x $1,000 = $5,000 income loss over five years. Add that $5,000 to the appropriate five year loss listed on the chart.