October 27, 2010 — Instead of a cost of living adjustment for retirees in 2011, Congress and the White House are likely to push through a proposal that gives social security recipients and veterans a one-shot $250 check instead. But what about retired federal employees?
Adcock and David Snell, director of retirement benefits for NARFE, joined Mike Causey on Your Turn.
Last year, with no COLA either, social security recipients received a $250 check and retired feds who were not eligible for the check received a $250 tax credit.
The difference this year is that it is an election year, Adcock said. With anti-fed sentiment high, a check or tax credit are not guaranteed.
“It could play out the same way, but at this point it’s too early to know,” Adcock said. “First, we have to persuade lawmakers to include this particular group again.”
Triple Whammy With some exceptions, when there is no COLA, retirees enrolled in Medicare Part B are protected from any premium increase. This protection covers about 75 percent of Medicare beneficiaries, Snell said.
However, the feds who are ineligible for the $250 check are also ineligible for this protection against Medicare premium increases, Snell said.
Retired federal employees, therefore, are hit with a “double whammy” of not receiving a COLA and facing Medicare premium increases.