Prompt Passage of Economic Recovery Act Payment for 2010 Needed
Law Does Not Provide for a Social Security Cost-of-Living Adjustment for 2010
Since the Cost-of-Living Adjustment (COLA) went into effect in 1975, this will be the first year that there is no automatic adjustment. Social Security and Supplemental Security Income benefits for more than 57 million Americans will not automatically increase in 2010.
Some other changes that would normally take effect in January 2010 based on the increase in average wages also will not take effect, even though average wages did increase. Since there is no COLA, the statute prohibits an increase in the maximum amount of earnings subject to the Social Security tax as well as the retirement earnings test exempt amounts. These amounts will remain unchanged in 2010. A fact sheet with more information on 2010 Social Security changes can be found on the Social Security Administrations web site.
According to Michael J. Astrue, Commissioner of Social Security said " This year, in light of the human need, we need to support President Obama's call for us to make another $250 recovery payment for 57 million Americans." The president is calling on the Senate to enact this legislation before it becomes too late for Social Security Administration to update its computer systems to implement this needed change. For a full update from the Social Security Administration go to www.socialsecurity.gov/cola.
