Is there a leak in your paycheck?

If you have the nagging feeling that your salary and annuity payments ain’t what they used to be, you may be onto something.

Pay raises for working feds, and cost of living adjustments (COLAs) for retirees have been spotty and irregular in recent years. But the annual rise in federal health premiums has been steady and that, inflation or no, has cut into what workers and retirees have left to spend on fun items, like food, fuel and clothing.

White collar feds get pay raises each January. Sometimes …

Federal and postal retirees get cost of living adjustments (COLAs) in January. Sometimes …

Meantime, federal health premiums continue to increase, going up an average of 7 percent in 2016.

Many politicans refer to pay raises as COLAs. But they are two different things. A pay raise is based on political-budgetary concerns. COLAs are more reality based because they reflect the increase in inflation (if any) from the third quarter of (July, August, September) of the current year, over the third quarter of the previous year. Many retirees think the measure the government uses doesn’t reflect their living costs. Critics on the other side said the Consumer Price Index that determines COLAs is too generous.

The problem both for federal workers and federal retirees is the stop-and-start nature of their raises and COLAs compared to health premium increases. Here’s the scorecard.

Retirees COLAs: In 2015, they got a 1.7 percent increase. In 2014, the COLA was 1.5 percent. In 2013, another 1.7 percent. In 2013, the COLA was 3.6 percent. There were no COLA increases in 2011 and 2010. Nor will there be one in January 2016.

Active Workers: White collar (nonpostal) feds got a 1 percent pay raise this year and in January 2014. Thanks to the 3-year pay freeze (two from the White House, another added by Congress) there were no pay raises in 2013, 2012 or 2011.

But medical inflation doesn’t pay attention to federal pay raises or retiree COLAs. Or the lack of same. Example:

In 2010, a federal worker or retiree could get the Blue Cross basic self-only option for $1,210. Postal premiums were even lower. The Blues basic plan family plan premium that year was $1,890.

The very popular Blue Cross standard (a favorite of retirees) plan was $2,100 for self-only and $4,810 for the family plan. Fast forward to today:

Next year nonpostal feds and retirees in the Blues basic plan will pay $1,780 for basic self-only coverage and $$4,270 for family coverage. Those in the Blue Cross standard option will pay $2,600 in premiums next year for self-only coverage and $6,190 for family coverage.

People expect health premiums to increase. And compared to private health plans, the government has done an excellent job of holding hikes to a minimum. But still they rise …

Now you know where at least some of your money has been going. Turns out you are not some madcap spendthrift after all.

Nearly Useless Factoid

By Michael O’Connell

The crunchiest foods are hard candies, such as peppermints, toffee and Jolly Ranchers.

Source: Cooking Light

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