Money in the Middle

Sandwich Generation Talking About Money Up, Down and Across Generations

Posts Tagged ‘social security COLA

Social Security: No COLA Again?

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Within the next few weeks the Social Security Administration will announce the fate of the cost-of-living-allowance for 2010.  The news doesn’t look good — for the second year in a row.

The decision for 2011 is based on the change in inflation between the third quarter of 2008 and the third quarter of 2010

 “[There has been] an increase [in prices] relative to 2009, but it’s still below the 2008 level, so no COLA again,” said Donald Marron, a former director of the Congressional Budget Office told USA Today .

The decision will also impact many pensions that are tied to the Social security COLA decision.

While we surely haven’t seen the price increases to support a COLA increase, it sure doesn’t feel good.  Especially for those who are already retired and counted on those modest bumps for their living expenses.

For those still working, there’s some good news.  The same law also keeps the same cap on wages subject to Social Security for 2011.

Expect to hear more from Social Security by mid-October.

Written by Laura Rossman

October 5, 2010 at 11:47 pm

No COLA for Social Security Recipients

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No cost-of-living adjustment for Social Security recipients in 2010.  That’s the official word today from the Social Security Administration.  The focus now turns to Congress to see whether they will  provide a $250 payment to each Social security recipient in 2010.

The supporters of the $250 payment say that seniors experience more health care costs and those costs are increasing much faster than the consumer goods formula COLA is based on.  AARP is contacting its members to tell members of Congress to support the payment.  President Obama endorsed it today.

I’m sure it will be welcome relief to those who are experiencing increases in  Part D drug plan prices increasing or Medicare Part C plan premiums. But I wonder when we will stop making exceptions to rules because we don’t like the outcome.

Written by Laura Rossman

October 15, 2009 at 6:56 pm