Posted on Wednesday, 21st April 2021 by

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We can expect a higher COLA increase for 2022. According to Kiplinger’s Magazine the 2022 COLA will Likely increase to 3%, the largest increase since 2012. The final number will be released this October.  There are many variables in the annual COLA calculation and these can change dramatically before the final numbers are tabulated.

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For Federal Employees under the FERS system, if the increase in the CPI is 2 percent or less, the Cost-of-Living Adjustment is equal to the CPI increase. If the CPI increase is more than 2 percent but no more than 3 percent, the Cost-of-Living Adjustment is 2 percent. If the CPI increase is more than 3 percent, the adjustment is 1 percent less than the CPI increase. The new amount is rounded down to the next whole dollar.

Bill, one of our newsletter subscribers, performs quarterly updates on the CPI and COLA calculations. He suggests that if inflation remains constant at 2.6% until 30 September 2021, the Social Security and FERS COLA based on the CPI/W will be 2.2% and the FERS DIET COLA will be 2.0% according to his detailed analysis.

Personally, I believe inflation will far exceed our expectations this year. Prices are increasing across the board from groceries, lumber and steel, to gas at the pumps and everything in between.  Companies large and small aren’t able to staff their operations due to severe labor shortages. Many are making more on enhanced unemployment benefits than they would if they returned to their old jobs; who could blame them for staying at home. Businesses, out of necessity, must offer higher wages to stay in business. These increased operating costs are passed on to clients and customers alike. Unfortunately, a large number of small establishments won’t survive.

That being said, these are uncertain times and we don’t know what lies around the corner. Many things can change these projections in either direction. Hold on for quite a ride this year. I’m hoping for the best.

Prescription Tip

I went through our medicine cabinet and pantry to organize our medications and weed out old and outdated ones. I collected at least 50 medications and prescriptions, some dating back to the late 1990s!  These included over the counter and prescribed drugs.

The first place I called was my local CVS pharmacy and they provide a secure drop box at our location where I was able to dispose of my horde. Before disposing of prescription medicines, be sure to remove all personal information on pill bottle labels and medicine packaging.  All of your medicines dropped off at the take back locations will be destroyed.

According to the FDA the best way to dispose of most types of unused or expired medicines (both prescription and over the counter) is to drop off the medicine at a drug take back site. You can use the FDA’s drug collection site list to find disposal locations in your area.

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Disclaimer: The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, and benefit information are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance including OPM’s retirement center. 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.

Last 5 posts by Dennis Damp

Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION | Comments (0)


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