Two court rulings in favor of pension reductions


http://www.nytimes.com/2011/07/01/business/01pension.html?nl=todaysheadlines&emc=tha25

The two state rulings in Colorado and Minnesota target the cost-of-living-adjustment or COLA. The COLA has been eliminated as part of the  pension reform just passed in New Jersey.

The COLA affects me personally as a retiree. I have chosen not to write about the issue up to this moment and look at the loss as a small contribution (proportional to my resources) that I am making towards solving the fiscal crisis in New Jersey. Also, I am a frugal gal.

However it is my opinion that a form of COLA should be re-instated at some point but in the form of a fixed increase rather than as a percentage of everyone’s pension. This is to shield to lowest pensions from the ravages of inflation. That is to say, if the lowest pension in the system is $20,000/year and the inflation in a given year was 1%, the COLA would be $200 for all pension recipients, regardless of the size of their pension. That is how I would do it.

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