Subscribe to Free Daily Newsletters
Post a Job

Featured Jobs

Experienced 401k Plan Administrator/Consultant

Farmer & Betts, Inc.
(Tacoma WA / Tualatin OR / Littleton CO)
Executive Director

Employers Council on Flexible Compensation (ECFC)
(Washington DC / Telecommute)
MEP Assistant Team Leader

Nova 401(k) Associates
(Houston TX / Dallas TX / Austin TX / Scottsdale AZ / Telecommute)
Employee Benefits (ERISA) Associate Attorney

Stinson LLP
(Kansas City MO / Minneapolis MN)
Senior Retirement Plan Administrator

RetireWell Administrators, Inc.
(Marlton NJ / Telecommute)
401(k) Plan Administrator
Southern Pension Services
(Tampa FL)

Free Daily News and Jobs

“BenefitsLink continues to be the most valuable resource we have at the firm.”

-- An attorney subscriber

Get the BenefitsLink app LinkedIn

BenefitsLink > Q&A Columns >

Stop, Look & Listen: Railroad Retirement Benefits Q&A

Answers are provided by Robert S. Kaufman

Concern About No Cost-of-Living in 2010

(Posted December 24, 2009)

Question 740: How can the Railroad Retirement Board say the cost of living has not increased? Almost anything you can think of has increased, including the cost of milk, utilities, gas, taxes, food, medical insurance.

Answer: I can understand your disappointment that the automatic cost of living adjustment in many federal benefits, including Railroad Retirement, did not result in an increase this year. The formula used compares the average cost of many things between July-September of this year with the cost of those same things between July-September of last year.

Although the cost of many things increased in 2009, there were dramatic reductions in two of the most important items monitored: gasoline prices and real estate prices, which offset the increases.

The method of calculating cost of living increases in federal benefits is set by the Congress through legislation. You should express your concern to your congressman and your two senators. If there are enough complaints, Congress might consider changing the formula to more accurately reflect the real increases in the cost of goods and services.

Important notice:

Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner or to readers. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of this and similar situations.

The law in this area changes frequently. Answers are believed to be correct as of the posting dates shown. The completeness or accuracy of a particular answer may be affected by changes in the law (statutes, regulations, rulings, court decisions, etc.) that occur after the date on which a particular Q&A is posted.

Copyright 1997-2017 Robert S. Kaufman
Related links:

(restricted access)

(restricted access)

© 2019, Inc.