No 2016 COLA for Federal Retirees

"...There will be no cost-of-living-adjustment increase for 2016 after Consumer Price Index numbers for the third quarter came in under the mark, we learned Thursday. As a result, 30 percent of Medicare Part B beneficiaries—including many federal retirees—will see health insurance premiums shoot up from $104.90 a month to $159.30, a more than 50 percent hike.

“That would be a big problem for a lot of people,” said Walt Francis, an economist and expert on the Federal Employees Health Benefits Program. “They face choices like, ‘Do I drop Part B?’ Or, for example, some older federal employees who are thinking of retiring next year, they may want to postpone their retirement so they can sign up for Part B a year later.”

COLA adjustments are determined, in part, by the CPI-W, which determines the price of goods and services by urban wage earners and clerical workers. The COLA level increases if the third quarter CPI-W numbers are more than the previous year’s numbers. If the CPI-W remains at or below than the previous year, the COLA benefit remains the same..."

Read more at federaltimes.com