




Social Security Explained, 2009 Edition ![]()
Provides a comprehensive and detailed explanation for the federal old-age, survivor's and disability insurance segments of the Social Security program.
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For the first time since 1975, when Social Security benefits became indexed to increases in the Consumer Price Index, there will be no cost-of-living increase in Social Security benefits for the coming year. The lack of increase is the result of a 2.1% decline in the Consumer Price Index (CPI) over the past year.
The Social Security Act (Act) provides for a cost-of-living adjustment, or COLA, based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of one year to the third quarter of the next year, but only if the adjustment is a positive one (Act § 215(i)). The decline in the index from the third quarter of 2008 to the third quarter of 2009 means that benefits will not rise in 2010, and, according to Social Security actuaries, benefits also are not likely to rise in 2011. In order for an increase to occur, the index must first make up for any decline in the CPI-W this past year and then rise above its level as of the third quarter of 2008. This scenario is not expected to happen until some time in 2011.
Top SellersSocial Security Benefits Including Medicare![]() Provides an overview of the complex rules relating to Social Security retirement, survivors and disability benefits, as well as Medicare benefits. |
Summary of Law Updates
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