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November 18, 2013

Will there be a 2014 Cost-of-Living Adjustment (COLA) for Social Security Disabilty recipients?

Good news for Indiana residents receiving Social Security Disability benefits.  There will be a 1.5 percent Cost-of-Living Adjustment (COLA) for Social Security benefits and Supplemental Security Income (SSI) benefits recipients.  The increase will begin with the December 2013 benefits, payable January 2014.  This is the fourth year in the row that we have seen an increase to Social Security benefits.  More than 57 million people received some type of Social Security benefit.    How is COLA determined?  COLAs are based on increases in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).  It is determined by the Bureau of Labor Statistics in the Department of Labor.  The purpose of COLA is to offset the effects of inflation on fixed incomes.  In 1960 President Eisenhower signed an amendment that allowed disabled workers of any age to receive payments.  At that time there were over 500,000 people receiving disability benefits, with an average benefit amount being $80.  It is hard to imagine what would happen without COLA.  In 1975, an eligible individual received $157.70 per month – imagine if beneficiaries were still receiving the same amount today! What do I have to do to receive my COLA? Absolutely nothing; the Cost-of-Living Adjustment is automatic.  Because there was an increase in the consumer price index from the third quarter of 2012 to the third quarter of 2013, you will get the COLA of 1.5 percent in 2014.  You will see the increase in your award benefit payment.  Will my award amount ever decrease?  Hopefully you will never see a decrease in payments.  However, you must report changes to your living arrangements to the Social Security Administration (SSA) within 10 days after the change occurs.  While these changes are very unlikely to affect your benefit amount if you receive Social Security Disability Insurance, they might affect your monthly benefit if you receive Supplemental Security Income (SSI).  Some changes that can affect your SSI payment amount include: Moving to a … Continued

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December 14, 2010

2011 Cost-of-Living Adjustments (COLA) for Social Security Disability Benefits Recipients

As with all Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) benefit recipients, Indiana disability benefits recipients are not going to see an increase in their monthly disability payment in 2011. On October 15th, 2010, the Social Security Administration (SSA) announced that there would be no Cost-of-Living Adjustments (COLA) for 2011. This is the second year in a row that there was not an increase to SSDI, SSI or Social Security retirement benefit payments.  Over 50 million Americans receive some form of Social Security benefit. What are Cost-of-Living Adjustments (COLA)? COLA is an automatic adjustment to the SSDI or SSI recipient’s monthly benefits that may occur each year. The COLA increase is based on the percentage increase from year to year of the Consumer Price Index for Urban Wage Earners and Clerical Worker (CPI-W) during the third quarter of the year.  This percentage increase of COLA is strictly based on the CPI-W increase so, when there is not an increase in the CPI-W then there is no increase in COLA.  CPI-W increases are determined by the Bureau of Labor Statistics in the Department of Labor.  The purpose of the COLA increase is so the purchasing power of SSDI or SSI benefits keep in pace with consumer prices and that benefits are not eroded by inflation. Why isn’t there a COLA increase in 2011?  As in 2010, because there was no increase in the CPI-W from the third quarter of the previous year to the third quarter of the current year. Therefore, SSDI and SSI payments will remain the same in 2011.  In the last two years, overall inflation has been low, largely because of the economic downturn.  It has been predicted by the Congressional Budget Office that inflation will remain low for the next several years.  As a result, this may mean that Social Security recipients may not see a COLA increase for … Continued

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October 12, 2010

Cost-of-Living Adjustment (COLA) for Social Security Disability Benefits Recipients

Indianapolis Social Security disability benefits recipients receiving either Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) payments are entitled to a Cost-of-Living Adjustment (COLA) each year.  COLA is an automatic adjustment to the recipient’s benefits that may occur each year.  Indiana Social Security Disability Attorney Scott Lewis tries to explain to his clients how COLA may affect their disability payments.The purpose of COLA is so the purchasing power of SSDI or SSI benefits is not eroded by inflation.  The increase in payments is determined by the percentage increase from year to year of the Consumer Price Index for Urban Wage Earners and Clerical Worker (CPI-W) during the third quarter of the year.  This percentage increase of COLA is strictly based on the CPI-W increase so when there is not an increase in the CPI-W then there is no increase in COLA.  CPI-W increases are determined by the Bureau of Labor Statistics in the Department of Labor. In 2010, there was no increase in COLA.  As all SSDI and SSI recipients experienced, this is the first time in history, dated back to 1975, that there was not an increase in COLA. There was no SSDI and SSI COLA increase in 2010 because there was no increase in the CPI-W from the third quarter of 2008 to the third quarter of 2009. Therefore, SSDI and SSI payments remained the same in 2010. Indiana SSDI and SSI benefits recipients may be wondering if there will be a COLA increase in 2011.  According to recent studies, experts are predicting that there may not be a COLA increase in 2011 and possibly in 2012 due to lack of inflation. Official projections will be determined later this month.  Most Social Security disability recipients rely on these benefits as their only source of income. In some cases, the effects of no increase in COLA may be financially painstaking. At the … Continued

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