Social Security

// September 22nd, 2009 // News That Affects You

There is new attention being paid to a portion of the recent Social Security Trustees report that indicates the possibility of no cost of living adjustment (COLA) for Social Security and Supplemental Security Income beneficiaries for 2010. The Associated Press and member news outlets have recently reported the possibility of no COLA. Annual Social Security benefits increases are, by law, based on the rate of inflation in the third quarter of the previous year; the law prevents benefits from being reduced based on negative inflation. Since it is predicted that this years’ third quarter (July through September) will show no increase in inflation, the expectation is that there will be no COLA for benefits in 2010. Advocates for Congressional intervention point out that an automatic increase in Medicare prescription drug program premiums will result in reduced funds available to meet beneficiaries’ monthly expenses. The Social Security Administration typically reports on the up-coming COLA amounts in mid-October. Source for this article: The Capital Insider, August 28, 2009