For the Record The chart below tracks the CPI-W, the monthly inflation change, and the cumulative percentage gain for the next CSRS and Social Security COLA. CPI-W October 2011 November December January 2012 February March April May June July August September
223.043 222.813 222.166 223.216 224.317 226.304 227.012 226.600 226.036 225.568 227.056
MONTHLY % CHANGE % CHANGE FROM 223.2 -0.29 -0.10 -0.29 +0.5 +0.5 +0.89 +0.31 -0.18 -0.24 -0.20 +0.7
European News Buoys Stocks ByTracey Ray
T
he month of September started out slowly until the European Central Bank announced it would spend an unlimited amount of money to buy the bonds of struggling governments. By supporting bond prices, these purchases will keep interest rates lower than they otherwise would have been, making it less expensive for the weak countries to fund their operations. The news sparked a global stock market rally, and all of the Thrift Savings Plan equity funds rose approximately 2 percent that day. Stocks drifted higher for the rest of the month until weak economic data out of the United States led to the biggest weekly decline in the C Fund since June.
Tracey Ray is chief investment officer of the Thrift Savings Plan. 66
-0.09 -0.19 -0.48 -0.01 +0.49 +1.38 +1.69 +1.51 +1.26 +1.04 +1.71
Inflation Rises in August
T
he Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.7 percent in August. To calculate the 2013 cost-of-living adjustment (COLA), the indices of July, August and September 2012 will be averaged for a thirdquarter determinant, which will be compared with the 2011 thirdquarter base of 223.233. The August index of 227.056 is up 1.71 percent from the base. Benefits awarded under the Federal Employees’ Compensation Act (FECA) to individuals suffering work-related injuries or illnesses are adjusted according to each calendar year’s percentage change in the CPI-W. August’s index is 2.20 percent higher than the December 2011 base index of 222.166. ■
Thrift Savings Plan Investments* Month G Fund 0.14% 2011 October November 0.14% December 0.15% 2012 January 0.13% February 0.12% March 0.14% April 0.15% May 0.14% June 0.11% July 0.12% August 0.11% September 0.10% Last 12 Months 1.56%
F Fund 0.11% 0.01% 1.01% 0.88% 0.05% (0.61%) 1.12% 0.91% 0.05% 1.38% 0.07% 0.15% 5.24%
C Fund 10.93% (0.21%) 1.04% 4.50% 4.34% 3.30% (0.62%) (5.99%) 4.13% 1.40% 2.25% 2.57% 30.34%
S Fund 14.09% (0.51%) (0.04%) 7.59% 3.99% 2.30% (0.71%) (6.91%) 3.25% (0.62%) 3.57% 2.51% 30.75%
Month L Income October 2.31% 2011 November 0.02% December 0.20% 2012 January 1.18% February 0.98% March 0.54% April 0.01% May (1.38%) June 1.04% July 0.37% August 0.63% September 0.62% Last 12 Months 6.67%
L 2020 6.18% (0.34%) 0.11% 3.03% 2.53% 1.23% (0.38%) (4.20%) 2.72% 0.63% 1.57% 1.52% 15.22%
L 2030 7.68% (0.49%) 0.09% 3.77% 3.10% 1.49% (0.52%) (5.23%) 3.32% 0.71% 1.94% 1.87% 18.64%
L 2040 8.83% (0.62%) 0.07% 4.34% 3.54% 1.68% (0.63%) (6.00%) 3.77% 0.75% 2.23% 2.12% 21.21%
I Fund 9.48% (2.46%) (2.03%) 5.36% 5.14% 0.13% (1.87%) (11.40%) 7.08% 0.56% 3.29% 2.96% 15.52% L 2050 9.92% (0.78%) (0.01%) 4.87% 3.99% 1.86% (0.78%) (6.85%) 4.27% 0.78% 2.51% 2.38% 23.48%
*This chart is provided as a service to NARFE members who enrolled in the Thrift Savings Plan while employed by the federal government. Retirees are not eligible for enrollment. These returns are net of the effect of accrued administrative expenses and investment expenses/costs. Percentages in ( ) are negative. Source: tsp.gov.
NOVEMBER 2012 | NARFE