Chained CPI Impact
Posted: Thu Jan 11, 2018 10:15 pm
With the new tax bill revising how the CPI is calculated; will this impact the future performance of the VIPSX Inflation Protected Securities Fund?
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Why would it?
I didn't search the web exhaustively but I find no reference to Chained CPI being applied to SS benefit increases in this tax bill. I think the world would have been on fire politically had that been on the table. The topic has been discussed for years and may someday see a change but not today.carolinaman wrote: ↑Fri Jan 12, 2018 9:23 amI think chained CPI will also be used for determining SS benefit increases.
"If, while an inflation-protected security is outstanding, the CPI is (1) discontinued, (2) in the judgment of the Secretary, fundamentally altered in a manner materially adverse to the interests of an investor in the security, or (3) in the judgment of the Secretary, altered by legislation or Executive Order in a manner materially adverse to the interests of an investor in the security, Treasury, after consulting with the BLS, will substitute an appropriate alternative index."
It's been proposed repeatedly but so far there's been little legislative support. I think this topic must fall under the category of proposed legislation.carolinaman wrote: ↑Fri Jan 12, 2018 9:23 amI think chained CPI will also be used for determining SS benefit increases.