You have it right. Wages lag general inflation. The current lag is exacerbated by unemployment. However, the increases are sure to come across the economy. The teachers had their window of opportunity and took advantage of it.
The increase is about 4% per year. We will be fortunate if the inflation (devaluation) rate is a mere 4% over the next 4 years. We will be getting a COLA SS notification in the coming weeks. I wonder if it will be near 4%
RE SS cola for 2013, I looked it up today online and it is “estimated” to be 1.3% but the actual percentage will not be out until October.
But how much of that COLA would be offset by increases in the Medicare premiums? I’ll be lucky to net out $10 a month. That’s why I’m still working at 72.