There Will Be No Cost of Living Increase in 2010 for those receiving Social Security-Truth!

There Will Be No Cost of Living Increase in 2010 for those receiving Social SecurityTruth!

Summary of eRumor:

A forwarded email that says there will be no cost of living adjustment (COLA) for people who are receiving Social Security.

The Truth:

The Social Security Administration (SSA) made the announcement on Thursday, October 15, 2009 that there will be no cost of living increase in 2010.  This will be the first time in 34 years that Social Security recipients will go without a cost of living increase. Click for SSA site.

In May of 2009, The Henry J. Kaiser Family Foundation predicted that no COLA increase would be issued for 2010 in their Medicare questions and answers page on their web site. Click for for Kaiser statement

Each year, since 1975, the Social Security Administration (SSA) has had increases to general benefits called “Cost of Living Adjustments” or “COLAs”.  On October 16, 2008 the SSA calculated a 5.8-percent COLA for recipients. 

According to an October 14, 2009 Associated Press article, in response to the SSA decision, President Barack Obama called on Congress to approve a $13 Billion bill to send $250 payments to more than 50 million seniors on Social Security, those receiving veterans benefits, disability benefits, railroad retirees and retired public employees who don’t receive Social Security. Click for article.

Recipients who might qualify for more would only be limited to one payment.

Updated 10/15/09