EDITOR:

I read in the paper today, “Social Security payments set for big increase.” Oh boy.

This is called a ‘Cost of Living Increase’ or “COLA”. It’s the annual adjustment to Social Security and other government paid individuals, like me, a retired veteran on a fixed income.

It sure will come in handy to get a raise. But wait. All may not seem as rosey as it sounds. First of all, agencies like Medicare are poised to raise their copays pretty much the same percentage as the planned increase to Social Security. Copays for drug programs and life insurance are also poised to grab an increase in what they charge too.

For me it’s a life insurance program I earned while in service called “Veterans Group Life Insurance.” Earlier this week I received a letter from a Civilian Life Insurance Company that informed me that my VGLI payments will increase by 6.5% effective January 1st. The final COLA percentage hasn’t even been announced yet, and already there’s a rush to grab their portion of the ‘Annual adjustment’ to my cost of living increase.

Why gripe about it? It’s a pay raise, right? Well yes, and no, because by the time all these agencies raise their costs, the COLA raise is pretty much eaten up and the actual amount folded up and put into your pocket amounts to “crumbs” as Nancy Pelosi once said.

One of the worst ways to increase COLA is to use the current cost of living and apply it to the future cost of living without adding in all the planned costs that agencies like Medicare and life Insurance want to increase their copays. It’s like asking the boss for a raise of five dollars so you can by an Adult Happy Meal at McDonalds, only to find out that once you get the raise, McDonald’s has raised the price to six dollars.

Which brings up the subject of percentage calcuated COLA. It’s a percentage of what you are making now. If someone is making more, they get a higher raise. Wow. Even though both people have to pay the same cost of living, shop in the same stores for food, clothing, copays for insurance and such. COLA raises should be based on next year’s cost of living, with all the increases planned for costs figured in. Those on fixed incomes are always one year behind the actual cost it takes to live. And the COLA shouldn’t be a percentage, but a fixed amount of money. Everyone gets a $100 raise — no matter how much they’re making now.

Oh, I suppose there are those who think that the more wealthy you are the higher your cost of living is. See you in the supermarket or gas pump.

Edward V. Stacey

Escanaba