Sunday, October 10, 2010

No Social Security COLA in 2011; for second year in row

The Associated Press is reporting that there will be no Social Security Cost of Living Increase (COLA) in 2011. This will make the second straight year without a COLA in the benefit amount for retirees, despite the fact that prior to 2010, COLA’s had been applied every year since 1975.

Political analysts consider this bad news for the Democratic Party at midterm.

The AP story is by Stephen Ohlemacher, with link here.

In 2009, predictions had been made that the COLA might not increase in 2010.

The problem is low inflation, or deflation, which is hard to believe given the increase in health care and higher education costs.

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