Bill would change COLA formula
- By FederalSoup Staff
- Mar 03, 2017
A new bill will re-evaluate how federal employees will be able to calculate their cost of living adjustments, Federal Times reports.
According to the report, federal retirees have had to watch COLA rates closely because it determines how much they are able to offset the costs of Medicare benefits, but a new proposal would end that cliffhanger by shifting the COLA from one Consumer Price Index to another.
In late February, Rep. John Garamendi (D-Calif.) introduced the CPI-E Act of 2017, which changes the formula used to calculate the COLA rates from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to the CPI for the elderly, or CPI-E, the article notes, a move that will reflect the real costs that seniors endure, like prescriptions, medical services and in-home care when calculation the COLA.