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Can Your Pension Plan Afford To Give You a COLA?
Pension Rights Center [PRC]
Nov. 19, 2007
Excerpt: Over time, pensions shrink in value due to inflation, and retirees have successfully fought for cost-of-living adjustments (COLAs) to their pensions to counteract the effects of inflation.... If your pension plan is overfunded -- that is, its assets (the amount in the plan) are greater than its obligations (the amount it must pay in pension benefits), your plan may be able to afford a COLA. You can find out whether your plan has surplus assets by looking at the financial forms the plan is required to file with the government. These are called Form 5500s.
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