Social Security made the official announcement in the Federal Register today that there will be no cost of living adjustment (COLA) on anything this year. Contrary to an earlier rumor, there will be no adjustment in the "bend points" used in benefit computation.
The dollar amounts (``bend points'') used in the primary
ReplyDeleteinsurance amount benefit formula for workers who become eligible for benefits, or who die before becoming eligible, in 2011 will be $753 and $4,542;
2010
first $761.00 of average monthly earnings is multiplied by 90 percent; the next $4,586.00 is multiplied by 32 percent; the remainder by 15 percent.
The bendpoints are going down for 2011. See alo my post on David Traver's website. http://www.ssa.gov/OACT/COLA/bendpoints.html
ReplyDeleteMike Walters
Obviously Chucky can't read. LOL
ReplyDeleteYeah, MikeWalters, I think you're correct. The bend points depend on AWI, which went down, and the official announcement that the article links to says "The national average wage index for 2009 is $40,934.93. This index
ReplyDeleteaffects the following items:
(1) The dollar amounts (``bend points'') used in the primary insurance amount benefit formula for workers who become eligible for benefits, or who die before becoming eligible, in 2011 will be $753 and $4,542;"
These are reduced from 2010 ($761 and $4586).
Yep, when the AWI goes down, the bend points must also. Charles can't get everything right....
ReplyDeleteThey pulled an EM on Bend Points. What are going to do change the law?
ReplyDelete