Social Security COLA is 0.0% for 2010

[Roland Slugg]

On October 15, 2009, the Social Security Administration announced that there will be no COLA for Social Security benefits and SSI payments in the year 2010. This is the first year there will be no adjustment since automatic Social Security COLAs began in 1975.

In a separate press release Medicare announced that the "standard" Medicare Part B premium will be $110.50 per month for the year 2010, a 15% increase from the $96.40 rate in effect during 2009 (and 2008).

Most social security recipients, however, will continue to pay the $96.40 rate in 2010. This is because the law contains a provision preventing a social security beneficiary's "net" benefit from decreasing below the prior year's level. There are three categories of Medicare recipients, however, who will pay the $110.50 rate: (1) New Part B beneficiaries; (2) Beneficiaries who do not currently have the Part B premium withheld from their Social Security benefit (such as those who have decided to delay applying for SS benefits beyond their "full" retirement age, up to the maximum age of 70); and (3) Higher income beneficiaries who will pay the $110.50 plus an additional amount based on their 2008 income -- above $85K single and $170K joint -- a change that was initiated beginning with the year 2007.

[Corduroy Frog]

Standard Deduction

As I understand it, the same statistics that govern COLA increases also apply to things like Civil Service salary increases, and tax items such as the Standard Deduction and exemption amounts for 2010.

If SS is frozen, they should freeze medicare withholding at the same level, then negotiate a freeze in what the medicare pays for drugs and ancillary medical costs.

[veritas]

Freeze medicare payments

And they will just raise your private insurance.

Oregon passed a new tax this year on insurance premiums of 1% for the uninsured.

My October premium just went up exactly 1%. What a coincidence.

[Corduroy Frog]

Regulation No Good

Yes many feel govt intervention is not needed. Sorry for Oregon people who had to cough up a 1% increase.

Mine went up 23+ %.

[veritas]

The 1% increase

was on top of the 12% increase that we got two months earlier.

Please give me some more government intervention. I don't think we are paying enough yet.

[OtisMozzetti]

As I understand it, the same statistics that govern COLA increases also apply to things like Civil Service salary increases, and tax items such as the Standard Deduction and exemption amounts for 2010....

I read an IRS e-mail which stated that the top of the 15% tax rate bracket for MFJ will indeed go up, but only from $67,900 to $68,000, an increase of less than .2%.

[WhiteOleander]

I'm dumbfounded that the gov't says the cost of living did not rise. That's why the seniors don't need a COLA.

Are they serious? Have the officials even walked into a grocery store?! Prices have definately gone up. And gone up substantially.

[Corduroy Frog]

Commodities have risen

Everything that can possibly rise at retail level HAS in fact risen. Gasoline is lower, and real estate is lower over last two years. However gas is not lower except for a spike upward in 2008, and lower real estate has not resulted in lower rent practically ANYWHERE.

An interesting note in Roland's original post says that government-measured inflation is flat, but cannot resist increasing the medical deduction withheld.

[Jiggers]

No inflation???

Government employees mustn't shop.

Now if there is no inflation, why is President O proposing a $250 payment to each retiree?

To get them to vote for his party in 2010?

[Bees Knees]

The COLA for 2009 was 5.8%. That was the result in the spike in gas prices during 2008. The COLA for 2010 is zero%, as a result of the gas prices going back down during 2009.

Average the two years out and you get 2.9% COLA per year, which is about the average COLA for the last half dozen years or so.