SSD & SSI; No COLA in 2010 & 2011

[dajoki]

Social Security will not raise benefits in 2010, forecasts say
By Robert Pear
New York Times
http://www.mercurynews.com/politics/ci_12281478?nclick_check=1
Posted: 05/02/2009 06:12:38 PM PDT
Updated: 05/02/2009 10:06:51 PM PDT

WASHINGTON — For the first time in more than three decades, Social Security recipients will not get any increase in their benefits next year, federal forecasts show.

The absence of a cost-of-living adjustment, calculated under a formula set by law, will be a shock to older Americans already hit by plummeting home values, investment losses and rising health costs. More than 50 million people receive Social Security.

"Most seniors have never been through a year in which there was no Social Security COLA," said David M. Certner, legislative counsel at AARP, the lobby for older Americans. Beneficiaries have received automatic cost-of-living adjustments every year since 1975. The increase this year was 5.8 percent.

<<snip>>

The forecasts, by the Obama administration and the Congressional Budget Office, indicate that Social Security beneficiaries will not receive any cost-of-living increase in 2010 or in 2011. The COLA is intended to preserve the purchasing power of Social Security.

A freeze in Social Security benefits would have major implications for Medicare because the COLA, in effect, puts a cap on premiums for Part B of Medicare, which covers doctors' services.

If there is no cost-of-living adjustment for Social Security, about three-fourths of beneficiaries will not see any change in their basic Part B premiums, federal officials said. But some beneficiaries do not have this protection and could face substantial increases in their Part B premiums.

Douglas W. Elmendorf, director of the Congressional Budget Office, predicted that inflation would remain low for several years, so Social Security might not pay a cost-of-living increase until January 2013. President Barack Obama's budget assumes no increase in 2010 or 2011, then a 1.4 percent COLA in 2012.

[DJ13]

1. So as food continues its slow rise, and gas once again marching towards $3.00

Obama will just tell Social Security recipients tough shit?

[peteykgirl]

3. $0

we got the stimulos payment. we don't get COLA. other tax payers didn't get penalized. they even got more $ than we did. SUCKS.

[MercutioATC]

2. There IS a COLA adjustment for 2010 and 2011...

...it's just zero.


SS COLAs are based on the CPI-W, which currently shows zero growth in cost of living.

But, since each year's SS COLA is based on comparing Q3 numbers from the previous year with Q3 numbers from the year preceding THAT, I don't see how this announcement is anything more than a prediction.

[CountAllVotes]

4. this is not going to help Obama get reelected

not one bit.

Billions tossed out to banks, etc.

Nothing for the disabled trying to live in poverty.

Shame on you Mr. President! :grr:

:dem:

[cbraun]

5. careful now

It is unwise to mess for too long and too hard with the poorest of this country. While the American poor are not as quick to react as, say Greece, Spain, or France, to name only the most similar countries, there is a limit. One day...

[Imagevision]

6. Too many boomers...