Re: CPI (Consumer Price Index)

The CPI is not a secret. You can go to the web site for the Department of Labor and wade through the statistics supplied by the agency at any time. The vast majority of readers do not was a recitation of data; they want the final result. If you want more, please check out the DOL website and peruse the data as long as you care to.

Re: CPI (Consumer Price Index)

I'm glad that the Editor doesn't think the CPI is a secret, and all will be revealed at the Dept of Labor Website.
While you are there (BLS.gov), see if you can find the 2.3 pct COLA. I can't.

Re: CPI (Consumer Price Index)

We have written a few articles that explain how the COLA is determined. We provide a search engine on our website for any reader who wants more information on a particular topic and the search is usually accomplished in seconds for any reader who wants to learn more.

Among the articles on the federal COLA, in addition to this one for which the comments are being posted, is an article at http://www.fedsmith.com/articles/articles.showarticle.db.php?intArticleID=1094 . This articles goes through a month-by-month analysis for last year to show how the COLA was derived. The same process is used every year but with different figures provided by the DOL website. Anyone wanting more information can also go to the NARFE.org site which provides information each month on the progress of the COLA for the next year.

Re: Funny Math?

We covered this issue over the past several years. One of the articles that addresses the issue is at: http://www.fedsmith.com/articles/articles.showarticle.db.php?intArticleID=1310

We also addressed it the previous year in the article at:
http://www.fedsmith.com/articles/articles.showarticle.db.php?intArticleID=1040

I did not go back any further to check but I suspect we also addressed it in previous years but you can find out more by using our search engine for yourself on our home page at www.fedsmith.com.

NARFE also addresses the issue each month with a monthly update. You can see the month by month computation on their website and here is their explanation of the 2008 COLA:

"Millions of retired and disabled Americans will see a 2.3 percent raise in the federal benefit payments they receive in 2008. On October 17th, the Labor Department’s Bureau of Labor Statistics (www.bls.gov/cpi) reported the Consumer Price Index for Urban Wage Earners and Clerical Workers, the CPI-W, for September 2007 is 203.9, up 0.3 percent from the August index of 203.2. For purposes of calculating this cost-of-living adjustment (COLA), the indices of July, August and September are averaged for a third quarter determinant. Thus, the average index for the third quarter of 2007 is 203.6, or 2.3 percent higher than the 2006 third quarter average base index of 199.1.

The majority of federal civilian, foreign service and military retirees, along with all Social Security recipients, will receive the 2.3 percent COLA, effective December 1, 2007. Eligible federal civilian annuitants retired under FERS will receive a 2 percent COLA in their FERS checks, along with the 2.3 percent hike in their Social Security payments.

Former federal employees now receiving monthly benefits under provisions of the Federal Employees Compensation Act (FECA) receive a COLA based on the change in the CPI-W during each calendar year. The September index of 203.9, is 3.4 percent higher that the December 2006 index of 197.2."

OPM also explains it on their website every year as well. Their explanation of the 2008 COLA is not up but you can read the 2007 explanation of how the COLA was derived last year at:
https://www.opm.gov/retire/html/faqs/2007cola.asp

If you take the time to check their website occasionally, they will have an updated explanation for the 2008 COLA.

As the COLA also impacts a few millions Social Security recipients each year, I suspect you can also go to the SSA website for an explanation that parrots the findings above.