Ever since Uncle Sam started giving Social Security recipients (and federal and military retirees) COLAs each January, they've watched the Consumer Price Index the way lions watch juicy antelopes. With keen interest.

In January of this year, because of oil driven inflation in much of 2008, the retirees got a 5.8 percent increase. But next January, because of extended periods of deflation over the past 12 months, the retirees will not get a COLA.

Nothing.

To take the sting out of a no-cal COLA, Congress and the White House are expected to approve a one-shot payment of $250 for everybody who gets Social Security benefits. The payments, if approved as expected, would also go to many, but not all, federal and postal retirees. We first reported this last week.

But there are a couple of catches in the still-being-developed plan:

1. Federal retirees who also qualify for Social Security benefits would get the $250 payment as part of their Social Security benefit. That would cover most of the 2.4 million retirees and survivors.

2. But the 300,000 federal retirees who don't get Social Security benefits would likely get a $250 tax credit (for the 2010 tax year) in lieu of a direct payment.

Based on e-mails to me, retirees are almost evenly divided over whether the $250 payments are a blessing, a pittance or an insulting bribe. Here's what they are saying:

• "I do not feel we retirees should get one dime. We agreed... that (inflation) would be the deciding factor for when we get an increase. We should all remember this because he who gives away the taxpayers money can also take it away. Most federal retirees have a good annuity and we just come across as if we will take hand outs." Michael O. Kreps, NASA retiree.

• "I am certainly far from being on welfare, but what people don't realize when you don't get a COLA is that the money is gone forever... because of the compounding that you don't get on a one-shot payment vs. a permanent COLA. Bob Lancione

• "If the idiots in the White House and Congress think (they will calm) my ire with their reckless spending, they are totally mistaken. I'm sending them an e-mail telling them I do not want the $250... To the White House will go my admonishment: 'Send me a check for $250 and I'll donate the money to the Republican National Committee, a Sarah Palin Fund, any candidate facing an incumbent in the next election. Maybe all of the above.'" Joseph De Guelle

• "$13 billion here (the cost of the total $250 payments), a 2 percent salary increase for federal workers when there are 10 million (?) unemployed, the government spending its way to intolerable future inflation. Got to love it!" Michael H.

• "Looks like the $250 payment will cover nearly all of a single persons federal health plan increase." Marc Harris, Florida Federation of NARFE Chapters.

To reach me: mcausey@federalnewsradio.com

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