FRS - no COLA for years earned since 2011 - how do you compensate?

[Unregistered]

https://www.myfrs.com/FRSPro_ComparePlan_Cost.htm

"Each July 1 after retirement, Pension Plan members will earn a 3% COLA for all service prior to July 1, 2011. Any retirement service earned on or after July 1, 2011 will not be subject to a COLA.

You will receive a fixed 3% cost-of-living increase on your June 30 monthly benefit amount (increase only applicable for FRS service earned prior to July 1, 2011). The increase does not include the Health Insurance Subsidy. Regardless of whether inflation is greater or less than 3%, your pre-July 1, 2011 benefit will still be adjusted by 3%."

Doesn't look like there is any push in the legislature to restore the FRS pension COLA any time soon. The loss of the pension COLA means a loss of a lot of pension income, depending on lifespan. Anyone care to post how they are compensating for the lack of retirement COLA for the years earned after 2011? This is a big issue especially for the newer people.

[Unregistered]

https://www.myfrs.com/FRSPro_ComparePlan_Cost.htm

"Each July 1 after retirement, Pension Plan members will earn a 3% COLA for all service prior to July 1, 2011. Any retirement service earned on or after July 1, 2011 will not be subject to a COLA.

You will receive a fixed 3% cost-of-living increase on your June 30 monthly benefit amount (increase only applicable for FRS service earned prior to July 1, 2011). The increase does not include the Health Insurance Subsidy. Regardless of whether inflation is greater or less than 3%, your pre-July 1, 2011 benefit will still be adjusted by 3%."

Doesn't look like there is any push in the legislature to restore the FRS pension COLA any time soon. The loss of the pension COLA means a loss of a lot of pension income, depending on lifespan. Anyone care to post how they are compensating for the lack of retirement COLA for the years earned after 2011? This is a big issue especially for the newer people.

It’s called planning for retirement and putting money away dipshyt

[Unregistered]

It’s called planning for retirement and putting money away dipshyt

Dip shit? I thought it was a worthy question. FRS got screwed up by the asshole governor we currently have and a few other dip shits who screwed with it to use our money elsewhere. How do you plan for it when they change it mid career ass hole. If your so smart why don’t we meet and talk about it face to face. I’d love to get your opinion in person.

[Unregistered]

I am the OP and I posted this question in order to gain some insight on how various deputies are dealing with the fact that the FRS pension is less generous due to the lack of pension COLA. If you have something helpful or useful to share, please do so. My intention was not to blame anyone or play politics but rather to offer some strategies which would help all, especially the newbies. How much to save and where, investments, and target amounts to offset the pension benefit reduction, etc.

[Unregistered]

I was hired in 1991. I was under the impression that people such as myself, would receive a reduced COLA that is based on some type of formula.

[Unregistered]

Here is the formula explained:
The COLA formula for retirees will be the sum of the pre-July 2011 service credit divided by the total service credit earned multiplied by 3 percent. Each Pension Plan member with an effective retirement date of Aug. 1, 2011, or after will have an individual COLA factor for his/her retirement. FRS Pension Plan members initially enrolled on or after July 1, 2011, will not have a COLA after retirement.
So if you have no COLA your money becomes less and less due to inflation. You can save up all you want but new hires have to serve 30 years. That money is going to really fast if inflation goes up in the next 30 years. Which it will "DIPSHIT" Save all you want but if what you have at the end doesn't grow accordingly then you will be broke because your money keeps losing it''s value. We will never see that money again. Get ready for more chabges. Every year they introduce numerous bills to tweek the system to their liking.

[Unregistered]

I was hired in 1991. I was under the impression that people such as myself, would receive a reduced COLA that is based on some type of formula.

Your hire date is 1991 so you have 20 years from that time to 2011 @ 3% COLA earned. The years after 2011 do not have a pension COLA. Let's say you retire in 2021, then your pension would pay you a COLA for the 20 years ending in 2011 but the last 10 years would be straight pension with no COLA. You are probably looking at a pension COLA of 2% in this scenario. Unless the legislature changes something.