Tom Poje Posted September 16, 2015 Posted September 16, 2015 The August CPI-U figure was released today at 238.316. coupled with the July rate of 238.654 (awaiting the Sept value which is released Oct 15, it appears there will be no change in any limits next year. if the Sept value was 239.7 the DB limit would increase to 215,000, but I'm pretty confident that is not about to happen. And it requires a lot bigger jump for the other limits to reach the next level. so, next year, same as this year. John Feldt ERPA CPC QPA 1
Mike Preston Posted September 16, 2015 Posted September 16, 2015 I get 239.619 (not 239.7), but I agree with the likely conclusion. Stated a slightly different way, the annualized rate of inflation between Aug and Sep needs to be 6.76%. We haven't seen that rate of inflation for a very long time.
david rigby Posted September 16, 2015 Posted September 16, 2015 I get Mike's 6.76% annualized inflation rate. But take note that only gets you back to even, not enough for any positive indexing. I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
Mike Preston Posted September 17, 2015 Posted September 17, 2015 No, it results, as Tom says, in the limit increase.
david rigby Posted September 17, 2015 Posted September 17, 2015 Oops, I can't read, got two values mixed up. Correct. I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
mbozek Posted September 17, 2015 Posted September 17, 2015 Based on Aug CPI-U number there will be no COLA increase for SS beneficiaries which will create big problems for the political class in a presidential election year. Also its possible that some Medicare beneficiates could have higher Part B and D premiums. mjb
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