How to Calculate Your 2012 COLA Payment

Fedsmith ^ | October 21, 2011 | Ian Smith

[Poundstone]

On October 19, a 3.6% COLA was announced for employees under the Civil Service Retirement System (CSRS) who have had benefits for at least one year. Employees under the Federal Employees Retirement System (FERS) will get a 2.6% COLA if they have had benefits for at least one year. OPM has issued official guidelines for how this will be applied to federal retirees.

[Oatka]

I am glad that Social Security is going up too.

Medicare increases will probably wipe out most of the raise. The last "increase" resulted in a $5 drop in my wife's SS payment because of that.

[ncpatriot]

I thought Part D was voluntary.

[TomGuy]

I thought Part D was voluntary.

It is. Sort of. You can choose not to sign up for a prescription drug plan. But you will be penalized and that penalty will accumulate for each month you are not covered by an approved prescription drug plan. If, later, you do enrol, you will pay the accumulated penalty monthly, thereafter.

[TomGuy]

http://www.medicare.gov/navigation/medicare-basics/medicare-benefits/part-d.aspx#LateEnrollmentPenalty

The above links to the medicare.gov website information regarding the Part D penalty.

[Thank You Rush]

“”They must sign up for an approved Part D Prescription Drug plan. Failure to do so will result in a monthly penalty that will accumulate until they do enrol in an approved plan. And, the penalty will not go away when they do enrol — once it starts, it will continue forever””

My post was regarding Part B which a person accepts or declines when they sign up for SS benefits. If it’s declined, there is a penalty for signing up for Part B at a later time.

I’m not aware of any requirement that a person MUST buy Part D Prescription coverage. That coverage is sold by private companies and only deducted from SS benefits if requested by the enrollee.

Are we talking about the same thing here?

[Coldwater Creek]

PING

[ncpatriot]

I just found this on that same website: "Medicare offers prescription drug coverage to everyone with Medicare. If you decide not to join a Medicare drug plan when you’re first eligible, and you don’t have other creditable prescription drug coverage, or you don’t get Extra Help, you’ll likely pay a late enrollment penalty." To me sounds like if you sign up with another Rx plan, then there is no penalty.