Do you feel sorry for federal workers? You know, those people with a pension, good benefits, good job security and very limited performance criteria on the job.🤢
How do average private sector workers pay their higher premiums with no raise and no COLA? And by the way, President Obama recently changed those raises from 1.6% to 2.1%.
Many federal workers and most federal retirees have a cash-flow problem.
How do they pay higher health premiums next year with a tiny pay raise and an all-but-invisible cost of living adjustment?
White-collar federal workers, depending on where they work, are looking at a raise of between 1 percent and 1.6 percent. Feds in Houston, San Francisco, Los Angeles, Houston, Chicago and Washington-Baltimore will be on the high end of the hike, whereas those in Richmond, Louisville, Omaha and other government outposts will get the shorter end of the pay stick.
The $$$ outlook is even grimmer for retirees. Their inflation-catch up COLA in January will be less than half-of-1 percent. So small that many won’t notice it unless they compare their December 2016 annuity with the amount they get in January. To add insult to injury, many of the retirees will be hit with higher Medicare Part B payments.
The problem facing many workers and retirees, especially those at the lower end of the pay or pension scale is that premiums in the FEHBP program are going up an average of 6.1 percent. Some plans will go up higher, some lower. But the average is 6.1 percent, just over 6 percent.
So how do folks reconcile the differences in what goes up and what’s going down? Short answer: Carefully
Source: My federalretirement.com
Modest raises, insignificant pension COLA, higher health insurance premiums; sounds pretty bad 😤😤😤 until you realize that most Americans aren’t concerned about a pension COLA …because they don’t have a pension or employer-sponsored retiree health insurance.
And about lower health care costs; well 6.1% is still more than three times general inflation not unlike in the 1980s when we thought things were bad😗