From the Associated Press:
The recession is projected to wipe out annual cost-of-living increases for 50 million Social Security beneficiaries for the next three years, something that hasn't happened since automatic adjustments were adopted in 1975.
The Congressional Budget Office says in its latest budget estimates that inflation will dip so low that Social Security recipients will not qualify for annual increases in 2010, or for two years after that.
4 comments:
Quite true and very possible however expect Medicare premiums to go up meaning many beneficiaries may see a decrease in their monthly cash each year.
except medicare premiums didnt go up this year, what makes you think that with no cola that the medicare premium would increase.
http://www.hhs.gov/asl/testify/2008/04/t20080401c.html
Medicare premiums are readjusted every year, regardless of COLA. Income exceeded costs last year; likely not to be repeated this year.
The cola increase is required to cover the percent increase in medicare. otherwise individuals are put on varible SMI, so if there is no COlA a beneficiaries monthly benefit is protected from being below the prior year amount before deductions. So either there would be a cola to cover the increase in medicare premium or the the increase in premium would switch everyone to Varible SMI which logically would not happen.
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