You just can’t see that the article is in error which is what prompted me to post in the first place. Colas usually run in the 1%-3% range. Reducing 3% by 1% results in a COLA of 2.97%. Reducing a 3% COLA by one percentage point results in a COLA of 2%....See the difference? Now do you understand that a one percent reduction in the COLA is in fact chump change.
Compounding interest can really add up over a long period of time. The article, however, uses a period of one single year. Annual refers to one year. It does not mean “over a period of years”.
You do the math...Tell me how much an SFC would have to earn if a 2% COLA resulted in $3700 in a single year.
The article includes compounding interest in a 20 year total of over $80,000.
Again. This article is just factually incorrect. No one can tell for sure how extensive the damage to retirees will be based solely on the information provided here.
“You just can’t see that the article is in error which is what prompted me to post in the first place. Colas usually run in the 1%-3% range. Reducing 3% by 1% results in a COLA of 2.97%. Reducing a 3% COLA by one percentage point results in a COLA of 2%....See the difference? Now do you understand that a one percent reduction in the COLA is in fact chump change....”
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Your first statement (”reducing a 3% COLA by 1% results in a COLA of 2.97%”) does not accurately reflect what will be happening as a result of the language in the Ryan budget. Your 2nd statement (reducing a 3% COLA by one percentage point results in a COLA of 2%) is correct. This legislation will have a substantial impact on our currently retired service members and current active duty service members who decide to stay in long enough for a pension.
By the way, I served 7 years active duty and decided to get out (didn’t join the reserves which was a mistake in retrospect). I don’t get a military pension and will not be getting one. But I certainly don’t begrudge the pensions earned by folks who decided to stay in for a career. They earned it.
I’ll make no more comments on this thread as it is descending into bickering.