The Social Security Administration last week announced that there will be no cost of living adjustment (COLA) for Social Security recipients again next year. Social Security and SSI benefits are adjusted annually to reflect increases, if any, in the cost of living as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), prepared by the Bureau of Labor of Statistics. Since the BLS determined that there was no increase in this index from the third quarter of 2008 through the third quarter of 2010, there can be no increase in the COLA for 2011. There was no COLA in 2010, either. But Congress did approve a $250 “economic recovery payment” to seniors, veterans, and people with disabilities. President Obama is asking Congress to take the same action again this year.
You can learn more about the COLA and your Social Security benefits on the Social Security website. The site includes a Fact Sheet, a press release, an explanation of how COLA affects Social Security benefits, and more.