[il-talk] COLA

[AZNOR99 at aol.com]

There has not been a definite determination if the Cost of Living  
Adjustment (COLA) will change, and consequently whether Social Security benefits  
will increase.  This is because 3rd quarter (July, August, and September)  
National Average Wage Index (NAWI) data is compared from year to year; 3rd  
quarter just closed yesterday.  In 2009, there was a roughly 5.5% increase  in 
the COLA.  In 2010 and 2011, the NAWI declined, so there was no COLA  
increase (by statute the COLA cannot decrease even if the NAWI decreases).   Data 
is not yet in on September, so there has not been a definitive  
determination of whether there will be a COLA increase, and if so, how  much.  However, 
economists are predicting a COLA increase of between 2% and  4.5% over 
current levels.
 
It is worth noting that there is current legislation in the House to not  
adjust the COLA in 2012 no matter what the NAWI reflects.  This legislation  
is aimed at reducing government spending.  If it passes, then current  
Social Security and Medicare benefit rates will extend at least through  2012.
 
The NFB publishes an article in the Braille Monitor explaining the coming  
year's COLA and benefit rates for Social Security and Medicare each  
December.  Here is the link to last December's article, which explained  what was 
to be anticipated to occur in January 2011 with regard to the COLA, SSI  and 
SSDI earnings limits and monthly benefits, self-employment contributions,  
Medicare contributions and coverage, and other areas affected by the  COLA.  
An article will be published in December 2011 to explain this  same 
information for 2012.  
_http://www.nfb.org/images/nfb/Publications/bm/bm10/bm1011/bm101114.htm_ 
(http://www.nfb.org/images/nfb/Publications/bm/bm10/bm1011/bm101114.htm) 
 
Hope this helps.
 
Ronza