Pension COLA variables
Posted: Tue Nov 26, 2013 5:46 am
When specifying pensions with a COLA... is the planner assuming the retirees pension plan increases the paid benefit equal to the assumed inflation rate entered in the summary view?
e.g. if I use an inflation rate of 3% in the Planner... is the Planner increasing the pension benefit by 3% to match inflation?
Below is how our pension plan pays COLA. How do I account for this in the Planner?
75% of the cost of living increase in the preceding calendar year or 9%, whichever is less, if the recipient is at least age 65
or
50% of the cost of living increase in the preceding calendar year or 6%, whichever is less, if the recipient is at least age 60 on July 1.
We are retiring at 60.
Thanks for the planner!
e.g. if I use an inflation rate of 3% in the Planner... is the Planner increasing the pension benefit by 3% to match inflation?
Below is how our pension plan pays COLA. How do I account for this in the Planner?
75% of the cost of living increase in the preceding calendar year or 9%, whichever is less, if the recipient is at least age 65
or
50% of the cost of living increase in the preceding calendar year or 6%, whichever is less, if the recipient is at least age 60 on July 1.
We are retiring at 60.
Thanks for the planner!