The cost of living went down by a record 1% last month. This was too late to figure into this year's cost of living adjustment (COLA) for Social Security benefits and will be factored into next year's COLA computation. It appears that the United States is heading rapidly into a major recession. It is entirely possible that the cost of living will have declined over the year time leading up to next year's COLA computation. This raises an interesting question: Could there be a negative COLA next year that would reduce Social Security benefits?
The answer appears to be no. The statute is 42 U.S.C. §415(i). It talks at considerable length about how to compute an increase in Social Security benefits due to inflation. The word "increase" appears over and over in the statute. I doubt that one could reasonable interpret the statute to allow computation of a negative COLA for Social Security benefits. Still, this appears to me that Social Security should request an interpretation on this from the new Attorney General.
The answer appears to be no. The statute is 42 U.S.C. §415(i). It talks at considerable length about how to compute an increase in Social Security benefits due to inflation. The word "increase" appears over and over in the statute. I doubt that one could reasonable interpret the statute to allow computation of a negative COLA for Social Security benefits. Still, this appears to me that Social Security should request an interpretation on this from the new Attorney General.
1 comment:
My wife receives DIB, and I have already warned her to enjoy the increase she is getting next year, because there might not be any the following year.
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