No Cost of Living Increase for SS Reciepients for 2010

My mother just received a letter from the SSA indicating that there will be no COLA for 2010 for my Grandfather. Without that 3% my Grandfather and many others like him will not be able to afford increases to their rent or other utilities bills.

Does anyone know of an agency that we can contact or form that we can fill out to get my grandfather that 3% increase?

I can not believe that taking away from US Citizens who fought in various wars, paid their taxes and worked so hard for the little bit of SS income is how Obama plans on recouping $$.

How will my grandfather and others like him pay their bills in 2010????

below is the announcement from the SSA....of course no one answers the phone # listed.


News Release
SOCIAL SECURITY
SSA Press Office 440 Altmeyer Building 6401 Security Blvd. Baltimore, MD 21235 410-965-8904 FAX 410-966-9973
Prompt Passage of Economic Recovery Act
Payment for 2010 Needed
Law Does Not Provide for a Social Security Cost-of-Living Adjustment for 2010
With consumer prices down over the past year, monthly Social Security and Supplemental Security Income benefits for more than 57 million Americans will not automatically increase in 2010. This will be the first year without an automatic Cost-of-Living Adjustment (COLA) since they went into effect in 1975.
“Social Security is doing its job helping Americans maintain their standard of living,” Michael J. Astrue, Commissioner of Social Security said. “Last year when consumer prices spiked, largely as a result of higher gas prices, beneficiaries received a 5.8 percent COLA, the largest increase since 1982. This year, in light of the human need, we need to support President Obama’s call for us to make another $250 recovery payment for 57 million Americans.”
The Social Security Act provides that Social Security and Supplemental Security Income benefits increase automatically each year if there is an increase in the Bureau of Labor Statistics' Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the last year to the third quarter of the current year. This year there was no increase in the CPI-W from the third quarter of 2008 to the third quarter of 2009. In addition, because there was no increase in the CPI-W this year, under the law the starting point for determinations regarding a possible 2011 COLA will remain the third quarter of 2008.
Some other changes that would normally take effect in January 2010 based on the increase in average wages also will not take effect, even though average wages did increase. Since there is no COLA, the statute prohibits an increase in the maximum amount of earnings subject to the Social Security tax as well as the retirement earnings test exempt amounts. These amounts will remain unchanged in 2010. The attached fact sheet provides more information on 2010 Social Security changes.
Information about Medicare changes for 2010, when available, will be found at www.Medicare.gov. The Department of Health and Human Services has not yet announced if there will be any Medicare premium changes for 2010. Should there be an increase in the Medicare Part B premium, the law contains a “hold harmless” provision that protects about 93 percent of Social Security beneficiaries from paying a higher Part B premium, in order to avoid reducing their net Social Security benefit. Those not protected include higher income beneficiaries subject to an income-adjusted Part B premium and beneficiaries newly entitled to Part B in 2010. On September 24th, the House passed legislation by 406-18 that would, on a fully paid-for basis, prevent abnormally large
premium increases. The President is calling on the Senate to enact this legislation before it becomes too late for the Social Security Administration to update its computer systems to implement this needed change.
For additional information about the 2010 COLA, go to www.socialsecurity.gov/cola.

Re: No Cost of Living Increase for SS Reciepients for 2010

They announced this back in the Spring/early summer, no?

I think they also anticipate no increase in 2011 either

Re: No Cost of Living Increase for SS Reciepients for 2010

It is a horrible situation, I know many people will suffer without that increase. However, there is no "decision" to not increase the amount -- it is based on the cost of living, the index they use to figure it out went down this year and that is why there is no increase.

This has been out since the summer, I have not heard anything about the 2011 increase this year. I know they were talking about another $250 stimulus payment for SS recipients, however no final decision has been made on that yet.

Re: No Cost of Living Increase for SS Reciepients for 2010

I know...my grandmother just called me lamenting...

Re: No Cost of Living Increase for SS Reciepients for 2010

COLA is based in part on the Consumer Price Index. With the recession, there has been no CPI index increase, and therefore no COLA increase, This is old news at this point, as it was decided back in September.

Message edited 12/21/2009 7:39:11 PM.

Re: No Cost of Living Increase for SS Reciepients for 2010

CPI has actually gone down so mathmatically it makes sense that there is no COLA.

Doesn't help the people affected though.

Re: No Cost of Living Increase for SS Reciepients for 2010

Posted by MrsSteflily

CPI has actually gone down so mathmatically it makes sense that there is no COLA.

Doesn't help the people affected though.

Message edited 12/21/2009 5:22:58 PM.