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 new address
  • Contributing more money to the household for your food and
    shelter
  • A change in how many persons live in your household
  • Separately purchasing your own food

As a disability attorney in Indianapolis, I represent clients with numerous disabilities.   I answer their questions, help them with the claim process and represent them at their hearing.  If you or a loved one has been denied benefits, contact me.  The consultation is always free and can be done in my office or over the phone. 

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