Monday, August 24, 2009

No Cost of Living Increases for Social Security Recipients

Yet another problem that Obama will need to tackle (next year). Social security increases are tied to inflation and inflation is negative. But seniors still face rising costs. I wonder if republicans are pleased with this form of "socialism" and if they'll stand in the way of fixing social security. Imagine if social security had been privatized like Bush wanted. Private industry does things so well, especially when it comes to bringing down the global economy.
Millions of older people face shrinking Social Security checks next year, the first time in a generation that payments would not rise.

The trustees who oversee Social Security are projecting there won't be a cost of living adjustment (COLA) for the next two years. That hasn't happened since automatic increases were adopted in 1975.

By law, Social Security benefits cannot go down. Nevertheless, monthly payments would drop for millions of people in the Medicare prescription drug program because the premiums, which often are deducted from Social Security payments, are scheduled to go up slightly.
President Barack Obama has said he would like tackle Social Security next year, after Congress finishes work on health care, climate change and new financial regulations.
Bernie Sanders is working to offer social security recipients a one-time payment this year. I wonder if republicans will fight that too:
Lawmakers are preoccupied by health care, making it difficult to address other tough issues. Advocates for older people hope their efforts will get a boost in October, when the Social Security Administration officially announces that there will not be an increase in benefits next year.

"I think a lot of seniors do not know what's coming down the pike, and I believe that when they hear that, they're going to be upset," said Sen. Bernie Sanders, an independent from Vermont who is working on a proposal for one-time payments for Social Security recipients.

"It is my view that seniors are going to need help this year, and it would not be acceptable for Congress to simply turn its back," he said.
Read the whole story at MSNBC