The article says 1%. I believe they must mean 1 percentage point? The article also says it would cost the average retiring E7 about $3700 a year. That must have been one hell of a COLA. This is just crappy journalism. The article raises more questions than it answers.
There numbers are way off for an E7 it will over time cost a substantial amount but it will effectively after taxes hold us at our current levels for years to come. In the mean time they plan to raise our insurance rates. Our pensions are earned in my case over 30 years of total service. Ryan went after us because we are an easy target and the Dims have been targeting us for years, especially Patty Murray. We make up less than one percent of the total population. We cost the military but it is the retirement we were promised for stay. Keep in mind that statically very few veterans make it to retirement, it is a hard life. I will not vote in 2014, I have heard the arguments, not voting is a vote for Dims, well look what voting got me! Maybe it is time the GOP stop treating vets and conservatives like the Dims react blacks.
“...The article says 1%. I believe they must mean 1 percentage point? The article also says it would cost the average retiring E7 about $3700 a year. That must have been one hell of a COLA....”
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That would be a 1% reduction per year, 1% the next year and so forth. I guess you’ve never heard of compound interest? It’s like that, only in reverse.
The real “cut” (like all “cuts” in Washington) is a cut in the growth rate. Our (yes, I collect a military retirement) annual COLA will be capped at 1% below inflation. -1%/yr over 20 years is a 20% delta over what the outyear number would have been without this “action”.