Posted on 14 September 2009
By Mark Miller
Social Security beneficiaries might see an annual cost-of-living adjustment (COLA) after all. Democrats in Congress are pushing for a one-time cash payment to make up for the likelihood that no COLA will be included in 2010 benefits. Seniors and others receiving Social Security would receive a one-time payment of $150 under a bill introduced in the House of Representatives by Rep. Carolyn McCarthy (D-New York).
By law, Social Security passes along an annual cost of living adjustment-or COLA-to recipients. The increase is tied to a broad measure of inflation in the economy, and a year hasn’t gone by since Social Security was created in the 1930s without a COLA.
But consumer prices have been flat or falling this year due to the sinking economy. And while the 2010 COLA won’t be announced formally until this fall, government forecasts make clear that Social Security recipients shouldn’t expect an increase next year-and probably not for at least two years beyond that.
Coverage of other Social Security COLA bills that have been introduced here.
More background on the Social Security COLA situation is here.