WASHINGTON, Oct. 22, 2014 /PRNewswire-USNewswire/ -- American Federation of Government Employees National President J. David Cox Sr. today issued the following statement regarding the 1.7% cost-of-living adjustment for federal retirees and Social Security recipients in January:
"More than 2.5 million federal retirees will receive a 1.7% increase in their retirement checks in January due to the annual cost-of-living adjustment, while retirees under the newer Federal Employees Retirement System will see the same increase in their Social Security checks.
"This is the third consecutive year, and the fifth time in six years, that the increase will be less than 2 percentage points. The costs for items that most seniors spend their money on – health care and groceries – are rising faster than the overall inflation rate. For instance, premiums for retirees and current employees in the federal health insurance program will rise 3.8% next year.
"At least the modest 1.7% increase for retirees is better than the paltry 1% wage increase current federal employees will receive next year. Federal employees are just now coming out of an unprecedented three-year pay freeze and are seeing their wages cut as they are forced to pay more into a retirement system that is fully funded.
"While any increase is better than no increase, the fact of the matter is that for millions of seniors, retirees and federal employees, these annual increases will be gone before most even receive them."
The American Federation of Government Employees (AFGE) is the largest federal employee union, representing 670,000 workers in the federal government and the government of the District of Columbia.
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SOURCE American Federation of Government Employees