Readers of Tom Philpott’s Military Update column sound off.

Retirees Doubt Their Colas Keep Pace With Living Costs     

I am concerned that the Consumer Price Index used to set retiree cost-of-living adjustments does not reflect their true rising costs. I believe the Bureau of Labor Statistic has another index, called the CPI-E, which measures the cost of living for elderly Americans, those over age 65.

This alternative index reflects a different cost-of-living allocation with greater emphasis, for example, on medical costs which have a heavier impact on older persons.

Not using the right index is a reason to consider an upward adjustment to the compensation of older retirees.

DON KORETZ
USAF-Ret.

BLS does maintain what it still calls after 25 years an “experimental” CPI-E that tracks the cost of living for elderly Americans.  BLS economist Ken Stewart said the CPI-E typically rises by “a couple of tenths of a percentage point” more than the CPI for Urban Wage Earners and Clerical Workers (CPI-W).  Yet Congress mandates that CPI-W be used to adjust payments for federal retirees, social security recipients and their survivors.

You are correct that the CPI-E index give greater weight to goods and services that the elderly tend to spend their money on like medical costs.  And, indeed, the CPI-W actually excludes the buying habits of elderly Americans from influencing the mix of goods and services used in that index for tracking price changes.

Both CPIs do track changes in food, fuel, medical prices – a common misperception -- but only the CPI-E attempts to do so using the spending patterns of the elderly.

The BLS still describes CPI-E as experimental, Stewart explained, because it only “re-weights” expenditures by the elderly.  It doesn’t take into account other factors tied to the elderly.  For example, it doesn’t survey based on where elderly live in the country, with more price collected in Florida or the southwestern states.  It doesn’t capture the kinds of shopping outlets retirees tend to use, or the fact that elderly often receive discounts.   It also doesn’t discern what products the elderly tend to buy for different product classes, including, for example, the weight of maintenance drug spending among pharmaceutical prices.

“We say to use caution with CPI-E because the results might be different if we had a true, production-grade, non-experimental CPI for the elderly,” Stewart said.  – Tom Philpott

As a military retiree I feel the pressing cost-of-living crunch and the inadequacy of yearly COLAs based on outdated pay scales.

Paying for Medicare Part B alone for retirees age 65 and older in order to obtain TRICARE for Life coverage is a major cut in retiree's income.

Thankfully, someone has finally noticed and brought to the forefront this inequity in the current retired pay system.  Thank you!

E. ZONIS
Chief Master Sergeant, USAF-Ret.
Via e-mail

The fact is that older retirees are falling behind in buying power is playing havoc with their quality of life.

I retired as an E-9 with more than 30 years of service.  It is tough for my wife and me who were at the top of the ladder.  It seems that after one gives the better part of their adult working life in service to our country, we are neglected in many ways, especially in purchasing power.

If something isn't done soon, those who are yet to retire will find themselves in the same condition.

PURNELL F. ROSS JR.
Chief Master Sergeant, USAF-Ret.
Via e-mail

I retired in 1974 and like so many others have seen the cost of living outstrip my income.  Now at age 72 and with basic living costs going through the roof I have had to cut way back. I know I am not alone.

It's not much fun keeping my home at 65 degrees during the winter in New York state, and turning on the water heater once a week to shower and wash dishes.  The clothes get washed in cold water. At night the only light on in the house is in the room I am in.

It's no wonder that all the services are having a hard time recruiting when the young folks see what's going on. Bottom line is that, in my case, “play time” is just about over and survival is now the name of the game.

Lawmakers should be required to walk in our foot steps and get a taste of the real world.  

HENRI V. CARRERE
Chief Interior Communicationman, USN-Ret.
Via e-mail

There are many individuals concerned about retired pay. However, most discussions on this miss an entire segment of the retiree community – National Guard personnel.

As a disabled E-7 with more than 37 years’ service time, my current retired pay is $749.88 a month. Picking up Social Security is out of the question at my age because there would be deep discounts. So I continue to work to provide for my family.

I thank God for TRICARE Standard. It’s the only insurance I can afford for my family.  I pray Congress won't cut physician reimbursement rates again, causing more doctors to drop the program. The VA takes care of me but not my wife.

TRICARE should reexamine its dental program for retirees. To pay for coverage, my retired pay is cut by $63 a month for a dental program we can't afford to use.  The last time we checked, the dentist wanted $10,000 to fix our problems -- after insurance paid its share. The VA doesn't want to do my dental work which would help me take care of my wife's problems.

This is not what I was promised when I joined up in 1964.  

THEODORE E. BUELL
Sergeant First Class, ANG-Ret.
Via e-mail

I would like to see the differences in retired pay reviewed and adjustment made if deemed appropriate.

NOLAN L. MAXFIELD
Master Sergeant, USAF Ret.
Via e-mail

Letters may be edited for clarity or length.  Write to Military Forum, P.O. Box 231111, Centreville, VA  20120-1111, send e-mail to militaryforum@aol.com or visit www.militaryupdate.com.