Category: Retirement Matters

The 2025 Social Security (SS) Cost of Living Adjustment (COLA) — The SS COLA is estimated to increase by 2.5 percent, according to the nonprofit Senior Citizens League. COLA is tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). It is based on average prices of household items like food, housing,… Read more

By Joanne Bump Discussion of Social Security (SS) Taxation continues from the August 2024 SERA-Nade. Current Proposals Impacting SS Benefits — As seniors count on SS benefits to make ends meet, those opposing the program are calling for numerous reduction plans like privatizing benefits, reducing the annual cost of living adjustment, sunsetting benefits, and increasing the… Read more

By Joanne Bump Social Security (SS) and Medicare — Most Michigan Defined Benefit state employee retirees receive a significant portion of their financial resources from SS, Medicare, and a State pension. Make time to learn about how these benefits could change and impact your pocket book. The aging population and growth in federal health care costs… Read more

By Joanne Bump Solve the Social Security Deficit — In May, the most recent annual Social Security Trust Fund report said that unless changes were made, Social Security benefits would be cut by about 20 percent beginning in 2033. According to a February 2024 American Association of Retired Persons (AARP) survey, the importance of Social Security… Read more

By Joanne Bump Pension Rate of Returns — The good news is that State Employee Retirement System (SERS) pension investments have performed well. The ten-year time-weighted rate of return is 9 percent as of 12/31/2023. In addition, SERS returns substantially beat their public plan peers, across all longer time periods. The long-term return is significant because… Read more

By Joanne Bump At the SERA Lansing Chapter General Membership meeting on March 6, 2024, Anthony Estell, Director of the Office of Retirement Services (ORS), and Allison Wardlaw, ORS Plan Development and Compliance Director, presented an overview and improvements to the State Employees’ Retirement System (SERS) Defined Benefit (DB) and Defined Contribution (DC) plans. DB… Read more

By Joanne Bump Retirement Crisis — Most State of Michigan, Defined Benefit (DB) state employee retirees depend on financial support from their State pension, Social Security, and Medicare. However, policy changes have weakened our retirement infrastructure. After March 1997, State employees became ineligible for a pension. State employee pensions were replaced with a Defined Contribution (DC)… Read more

By Joanne Bump Paid-Up Pensions — The significant news at this December’s State of Michigan Investment Board (SMIB) meeting was that, in 2023, Michigan paid off the pensions for the Michigan Public School Employees’ Retirement System (MPSERS) and their Other Post Employment Benefits (OPEB) like health insurance. Governor Whitmer recommended that the freed-up funding be spent… Read more

By Joanne Bump Long-Term Care (LTC) Is Costly — This discussion is continued from the December SERA-Nade. Many retirees equivocate on whether the inflation-adjusted increases in LTC insurance premiums are affordable. They don’t like paying the higher inflation adjusted LTC premium but know they haven’t saved enough either. See the Kaiser Family Foundation (KFF) chart showing… Read more

By Joanne Bump Inflation Premium Increase — Long Term Care (LTC) insurance pays for nursing homes, assisted living facilities, and home care. Some State employee retirees received a letter in early November 2023 from Prudential LTC insurance notifying them that their daily maximum nursing home care and premiums were increasing. The premium increase may not affect… Read more