[1]According to John Church with the Bureau of Labor Statistics (BLS) [2] the 2015 COLA will be 1.7%. This is the low range of what many projected of between 1.7 to 2%. We updated our COLA charts [3] this morning to reflect this change and we post all COLAs back to 1999.
If your annuity is $2,500 a month you can expect an increase of $35 per month or $420 per year! What will we spend this windfall on? Considering that our health care coverage is increasing an average of 3.2% in 2015 much if not all of the increase for many will go to pay our health care premiums. My wife and I subscribe to the Blue Cross and Blue Shield Basic plan which will increase to $321.67 per month, an additional $12.37 per month.
The 2015 COLA is .2% more than last year’s 1.5% and the same increase that we received in 2013. Unfortunately for working federal employees our COLA is .7% higher than what their pay raise is estimated to be.
FEHB Updates
Herb Casey, our Benefits and HR Forum Host, wrote an excellent article titled “It’s FEHB Open Season Tim [4]e” that you will find informative. It mentions a number of things that you need to consider this year when selecting your 2015 plan. We are still waiting for all of the information to be released and will update our FEHB pages as soon as they are available. They have announced the 2015 FEHB premiums [5]so you can begin to look at options and what you can expect to pay next year.
There are major issues to consider this year for many. For example, in our area, Blue Cross and Blue Shield has dropped UPMC physicians and hospitals from their preferred provider network. My wife uses UPMC facilities and doctors so we were initially concerned that we would have to change plans.
Fortunately the two parties entered into a reciprocal agreement [6] and there are exceptions for Senior Care, under for what is termed Access for Vulnerable Populations, and for circumstances where a patient requires Continuation of Care. Anyone who is 65 and older will still be able to use UPMC doctors as preferred providers. If you have an existing condition at any age you will be able to remain with that physician and receive treatment for your care. The physicians under these circumstances will be considered by Blue Cross and Blue Shield to be in their network and UPMC has agreed to accept their negotiated fees.
Stay tuned for more information as it is released. Open season is fast approaching, November 10, 2014 – December 8, 2014, and there is a lot to consider.
Learn more about your benefits [7], employment [8], and financial planning issues [9] on our site and visit our Blog frequently at https://fedretire.net [10] to read all forum articles.
- Request a FREE Retirement Benefits Summary & Analysis. [11] A sample analysis [12]is available for your review. Includes projected annuity payments, income verses expenses, FEGLI, and TSP projections.
- Retirement Planning Guide [13]
- 2015 Leave Record & Scheduling Spreadsheet [14]
- How to be Emotionally and Physically Prepared When You Retire [15]
- How to be Financially Prepared When You Retire [16]
- Master Retiree Contact List [17] (Important contact numbers and information)
- Survivor’s Guide [18]
- Estate Planning Guide [19](An 11 part series that will help readers prepare for retirement, understand basic estate planning techniques, and compile their personal “Survivor’s Guide” binder.)
Visit our other informative sites
- Federal Government Jobs & Career Center [20]
- FREE Federal Employee’s Retirement Planning Guide [21]
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The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, and financial information are subject to change. To ensure the accuracy of this information, contact relevant parties and ask them to review your official personnel file and circumstances concerning this issue. Retirees can contact the OPM retirement center. Our article is not intended nor should it be considered investment advice and our articles and replies are time sensitive. Over time, various dynamic economic factors relied upon as a basis for this article may change. The advice and strategies contained herein may not be suitable for your situation and this service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages
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