Gov't: No increase for Social Security next year

[G_j]

Source: AP

By STEPHEN OHLEMACHER, Associated Press Writer Stephen Ohlemacher, Associated Press Writer – 16 mins ago

WASHINGTON – More than 58 million retirees and disabled Americans will get no increase in Social Security benefits next year, the second year in a row without a raise.

The Social Security Administration said Friday inflation has been too low since the last increase in 2009 to warrant an increase for 2011. The announcement marks only the second year without an increase since automatic adjustments for inflation were adopted in 1975. The first year was this year.

The cost-of-living adjustments, or COLAs, are automatically set each year by an inflation measure that was adopted by Congress back in the 1970s.

To make up for the lack of a COLA, the House will vote in November — after congressional elections — on a bill to provide $250 payments to Social Security recipients, House Speaker Nancy Pelosi said.

<snip>

But even if the House passes the bill, it faces opposition in the Senate. The Senate defeated a similar proposal last fall, when a dozen Democrats joined Republicans to block it on a procedural vote.

Read more: http://news.yahoo.com/s/ap/us_social_security_no_cola

[Jamastiene]

1. This makes it the second year in a row that

it has stayed the same. Too bad prices won't stay the same for utilities and groceries.

[elocs]

2. Haven't I been reading and hearing about this for days now?

:shrug:

[RKP5637]

3. The cost of living here keeps going up and up, so however the slight of hand

calculates no inflation, that can be thrown out when it comes to actual buying power. Just groceries alone continue to go up and up in cost. And secure investments are a joke. CDs weren't bad before at 5%, but now that is a joke. But we sure can fund these pointless wars... Keep the MIC well funded.

[jaxx]

4. I wonder why the AP put up week old news today?

[doc03]

7. I think they made the announcement today but the MSM has

been playing the story for all it's worth for a week already and I suppose they will continue until November 2. It's not Obama's fault he didn't invent the CPI formula but he will get the blame.

[jaxx]

9. Thanks, I didn't know about the announcement.

No, it's not Obama's fault, isn't that formula from 1970? He's a convenient target for the naysayers in this country.

[Irishonly]

11. I think you are right.

I read about it last week and the MSM seems to be milking it for all its worth. Most of the stories last week asked whose fault it was. One online poll has 25% of respondents blaming democrats. Its silly. I would love to blame the republicans but I know I really can't except for the fact that Bush ruined the economy with his stupidity

[tularetom]

5. Aren't those COLA's supposed to be tied to the CPI?

Which, I think, specifically excludes energy costs (too cyclical they say).

Anyway seems to me the administration has once more stepped on their weenie by not holding this announcement back until after the elections.

Maybe they're required by law to release the information now. But it seems like a dumb move politically.

[alfredo]

6. Only the people that want something for nothing will be

upset. The teabaggers on my mailing list are all pissed off. They are immune to any reason. If they don't like SS, give it back and get a job.

[dixiegrrrrl]

17. for those of us who are retired and on Soc. Sec. you want us to

"get a Job?"

did it ever enter your head that millions of Democrats are retired and on Soc. Sec?

[alfredo]

18. I'm on social security and I understand that if there is no

inflation, there will be no cola. That's the rules of the game.

[Iowa]

15. No. SSA COLAs are tied to the CPI-W. Food and energy are included in the CPI-W...

http://www.bls.gov/news.release/cpi.t05.htm

http://www.ssa.gov/cola/2011/2011faqs.htm#q1

You're referring to one of the measures of "core" inflation that is sometimes touted in the media and is of little relevance to consumers' actual spending over the course of a year. SSA does not use that index to determine COLAs.

My living costs, with the exception of medical costs, haven't gone up in the past 12 months, as far as I can tell. It's only a guess, however, because nobody buys the exact same products from one year to the next, but I do track every penny using Quicken, and I can do side-by-side comparisons. Actually, my costs have gone down slightly - and as far as I can tell, my standard of living has not declined in the least.

However, since a MUCH larger percentage of my budget is allocated to health insurance costs than is typical, my overall cost of living is going up FAR faster than the CPI-W would indicate. The weighting they give to various categories is crucial, and can result in one's personal cost of living being WAY higher than the CPI-W would indicate.

Furthermore, the CPI numbers can be (and are) manipulated, IMO, by various gimmicks that are sleazy and intellectually dishonest.

[krkaufman]

8. If the COLA is truly unnecessary due to low inflation ...

... then why would $250 payments be necessary? If the $250 payment is necessary then, apparently, the COLA formula needs to be reviewed.

[G_j]

10. excellent point nt

[Iowa]

16. I agree.

[jtown1123]

12. While inflation based on the CPI-W was low, seniors spending

on prescription drugs and health care, which get more expensive every year, are not calculated in this formula. Some senior advocate groups suggest changing the law to use the CPI-E, which does take into account seniors' living expenses which are subject to higher inflation.

Here's a more detailed explanation: http://www.ncpssm.org/news/archive/vp_cola/

[jkappy]

13. Funny there's COLA increases on public pensions over the

past 2 years but not on SS. Another thing: many seniors rely on savings accounts that used to give them maybe 100-300 dollars a year--that income is gone (in fact the interest now is not enough to warrant a 1050 report for taxable income). Even the ebay well has gone pretty dry--in this economy.

[SheilaT]

14. The person who does the training

in my job area at the hospital I work at recently told me she hasn't had a raise in seven years.

Not to mention all those who've taken actual cuts in pay.

I do have sympathy, but those on Social Security are not the only ones not seeing an increase in their income these days.