UH Law Library's Blog

February 2, 2010

Updated CRS Report on Federal Pay & Pensions

Filed under: Free Web — Tags: , — uhlawlibrary @ 8:27 am

An annually updated report from the Congressional Research Service (CRS) on pay increases for current federal employees and cost-of-living adjustments (COLAs) for retired federal employees since 1969 was recently released.  As of January 2010, Social Security benefits have risen by 626% since 1969, and federal civil service retirement benefits have risen by 496%.  Average wages among all workers in the economy have risen by 632% since 1969. Increases in pay for civilian federal workers are indexed to wage and salary increases in the private sector, as measured by the Employment Cost Index (ECI), whereas federal retirement and disability benefits are indexed to price increases as measured by the Consumer Price Index (CPI). When measured over long periods of time, wages tend to rise faster than prices. Because COLAs for retirees do not reflect increases in the productivity of people who are still in the work force, COLAs do not make retirees financially better off. COLAs merely protect retirees from becoming financially worse-off as prices rise over time.

Advertisements

Leave a Comment »

No comments yet.

RSS feed for comments on this post. TrackBack URI

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Blog at WordPress.com.

%d bloggers like this: