From: ColonelDan

FROM:  TROA
CPI Correction Will Generate Small COLA "Catch-Up"

The Bureau of Labor Statistics recently found a small glitch in the
Consumer Price Index (CPI) calculation formula back in 1999 that led to a
.1% understatement of the December 1999 cost-of-living adjustment (COLA) for
Social Security annuitants, federal and military retirees and
survivors, disabled veterans and other federal annuitants.

Now the various federal agencies are making plans to pay the various
annuitant groups small lump-sum make-up payments later this year for the
extra money they should have been receiving in each check since January
2000.  In addition, annuities will be increased slightly going forward to
reflect the proper calculation.

Social Security plans to make the adjustment in July.  The Department of
Defense is still working on the updated adjustment, which will probably
come a little later -- around November -- for military retirees and
survivors.  Possible action by the Department of Veterans Affairs is still
under review. COLA adjustments for VA annuitants are based on the same CPI
adjustments as other federal annuity programs, but (unlike those for the
other programs) are not automatic and require separate legislation every
year.

The recalculation won't yield much for most recipients, and some receiving
relatively low amounts may not receive any adjustment at all because of
rounding.  But we're pleased to see the integrity of the recalculation
catch-up, however small.  It's never too late to do the right thing.