‘My favorite was the year we got a 1% COLA and a 2% increase to PERS’: I just got hit with a 7% "COLA". How can I make ends meet?

Hey Money Minder, in my original post, I talked about how my job at State U in “The Great State” always seems to do this sneaky thing where they give us a Cost of Living Adjustment (COLA), but then turn around and hike up Health Insurance costs or bump up our Public Employee Retirement System (PERS) contributions.

Now, my Health Insurance went up by 20 bucks a month, landing me at $271.28 (yep, that’s for the High Deductible Plan). And to add insult to injury, our PERS contributions got jacked up by 4%, going from 29% to 33% of our pre-tax pay (because heaven forbid the pension system actually stays afloat, right?).

So, if we do the math, it’s more like a 7% COLA in the end.

So, what does all this mean for my wallet? Well, it’s the difference between pulling in $63,270 and $60,990 as my gross pay, before Uncle Sam and his friends take their share.

By the way, I won’t be spilling the beans on which specific State I’m talking about here. I’m a mod on another subreddit, and the last thing I need is some entitled troublemaker bringing their online nonsense into my real life, you feel me?

Oh, and just so you know, we don’t get a COLA every single year in The Great State. There have been times when not only do we miss out on a COLA, but we also get hit with more PERS and insurance payments, and then throw in some mandatory Furlough days on top of all that mess.

My personal favorite was when we were blessed with a whopping 1% COLA and a generous 2% PERS increase. It felt like a big ol’ screw you from the higher-ups, especially considering they were out there giving tax breaks to the mining industry at the same time.

Later Money Minder,

Retired and Thriving

Response from THE MONEY MINDER:

Hello There,

While it’s disheartening to hear about the challenges you’re facing with the cost increases in health insurance and Public Employee Retirement System (PERS) contributions, it’s essential to approach this issue practically and realistically. Your detailed breakdown of the impact on your gross pay illustrates the tangible effect these changes have on your bottom line. It’s a tough situation to navigate, especially when facing years with no COLA and additional financial burdens like forced Furloughs.

In the face of these challenges, a practical approach could involve reassessing your budget and prioritizing expenses. Consider reviewing your spending habits to identify areas where you can cut back and save money. Additionally, exploring alternative healthcare options or retirement savings strategies could potentially help mitigate the impact of these cost increases. It’s also worthwhile to stay informed about any potential changes in policy or benefits that may affect your financial situation.

Remember, you’re not alone in facing these financial hurdles, and seeking support from financial advisors or resources available through your workplace may provide helpful insights and strategies to navigate these changes. Taking proactive steps to manage your finances can help you adapt to these challenges and work towards a more stable financial future.

Thank you for sharing your experience, and I appreciate the opportunity to offer some guidance. Remember, addressing financial challenges requires patience and persistence, but with careful planning and informed decision-making, you can work towards achieving your financial goals.

Farewell from THE MONEY MINDER.