Millions to face shrinking checks
Trustees: No cost of living adjustment for 2 years
By STEPHEN OHLEMACHER
WASHINGTON -- 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.
"I will promise you, they count on that COLA," said Barbara Kennelly, a former Democratic congresswoman from Connecticut who now heads the National Committee to Preserve Social Security and Medicare. "To some people, it might not be a big deal.
But to seniors, especially with their health care costs, it is a big deal."
Cost of living adjustments are pegged to inflation, which has been negative this year, largely because energy prices are below 2008 levels.
Advocates say older people still face higher prices because they spend a disproportionate amount of their income on health care, where costs rise faster than inflation. Many also have suffered from declining home values and shrinking stock portfolios just as they are relying on those assets for income.
"For many elderly, they don't feel that inflation is low because their expenses are still going up," said David Certner, legislative policy director for AARP. "Anyone who has savings and investments has seen some serious losses."
About 50 million retired and disabled Americans receive Social Security benefits. The average monthly benefit for retirees is $1,153 this year. All beneficiaries received a 5.8 percent increase in January, the largest since 1982.
More than 32 million people are in the Medicare prescription drug program. Average monthly premiums are set to go from $28 this year to $30 next year, though they vary by plan. About 6 million people in the program have premiums deducted from their monthly Social Security payments, according to the Social Security Administration.
Millions of people with Medicare Part B coverage for doctors' visits also have their premiums deducted from Social Security payments. Part B premiums are expected to rise as well. But under the law, the increase cannot be larger than the increase in Social Security benefits for most recipients.
There is no such hold-harmless provision for drug premiums.
Kennelly's group wants Congress to increase Social Security benefits next year, even though the formula doesn't call for it. She would like to see either a 1 percent increase in monthly payments or a one-time payment of $150.
The cost of a one-time payment, a little less than $8 billion, could be covered by increasing the amount of income subjected to Social Security taxes, Kennelly said. Workers only pay Social Security taxes on the first $106,800 of income, a limit that rises each year with the average national wage.
But the limit only increases if monthly benefits increase.
Critics argue that Social Security recipients shouldn't get an increase when inflation is negative. They note that recipients got a big increase in January, after energy prices had started to fall. They also note that Social Security recipients received one-time $250 payments in the spring as part of the government's economic stimulus package.
Consumer prices are down from 2008 levels, giving Social Security recipients more purchasing power, even if their benefits stay the same, said Andrew G. Biggs, a resident scholar at the American Enterprise Institute, a Washington think tank.
"Seniors may perceive that they are being hurt because there is no COLA, but they are in fact not getting hurt," Biggs said. "Congress has to be able to tell people they are not getting everything they want."
Social Security also is facing long-term financial problems. The retirement program is projected to start paying out more money than it receives in 2016. Without changes, the retirement fund will be depleted in 2037, according to the Social Security trustees' annual report this year.
President Barack Obama has said he would like to tackle Social Security next year, after Congress finishes work on health care, climate change and new financial regulations.
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scottmcx (anonymous) says...
But, Mein Fuhrer, you promised not to cut....
August 24, 2009 at 7:22 a.m. ( permalink | suggest removal )
theronce (anonymous) says...
Remember, anything that the government gives you can be taken.
August 24, 2009 at 7:29 a.m. ( permalink | suggest removal )
lillycollette (anonymous) says...
In one case the least they could do is return what was "Stolen" from a disabled man thru that corrupt family court in Chas. Co.--that was a heffty chunk of change there.
August 24, 2009 at 7:45 a.m. ( permalink | suggest removal )
cappy (anonymous) says...
And the gubment wants to run your health care!
Good luck.
August 24, 2009 at 8:02 a.m. ( permalink | suggest removal )
babeegurl (anonymous) says...
Poor Grandma!
August 24, 2009 at 8:04 a.m. ( permalink | suggest removal )
lillycollette (anonymous) says...
http://www.ssa.gov/oig/office_of_audi...
http://www.ssa.gov/oig/ADOBEPDF/audit...
Benefits Paid to Title II Beneficiaries with a Child-in-Care
[...] SSA uses its T2RD system to detect individuals who may be incorrectly receiving child in care benefits. However, within our 2 samples, we found that 65 beneficiaries were incorrectly paid child-in-care benefits and these cases were not identified by the T2RD system. We researched available data on SSA's systems and contacted Agency personnel to determine why T2RD did not stop child-in-care benefits to these beneficiaries and found that 33 beneficiaries' claims were processed incorrectly by SSA staff and, as a result, were not detected by T2RD; and [...]
For example, one child reached age 16 in July 2007. The child's mother applied for child-in-care benefits in August 2007 and SSA processed the claim-even though the child was over age 16 (and not disabled). Based on our audit, SSA stopped the child-in-care benefits and determined the beneficiary was never due any benefits. This beneficiary was overpaid about $27,000 from August 2007 to December 2008. [...]
August 24, 2009 at 8:15 a.m. ( permalink | suggest removal )
charlestowne2 (anonymous) says...
A formula is used to determine social security increases. It is based on inflation. In years where inflation is high, increases are bigger such as the 5.8% last year. No complaints then. This year there is no inflation, so no increase. Part D goes up by $2 a month but Part B stays the same even though it was scheduled to go up. Add in the increase to Part B not being paid but being paid by the government, the total amount paid is probably more then the previuos year. Many pension plans have yearly increases tied to inflation not just social security. So many people will not see increases in their income this year. It isn't limited to social security
August 24, 2009 at 8:53 a.m. ( permalink | suggest removal )
kyjello (anonymous) says...
Another out and out lie by BO and his henchmen. Hillary just pledged $2billion to some African nation's women for better health care. The money nobama will spend in Afghanistan's war will be much larger than any year of the Iraqi war. People who paid into this system their entire working lives better remember this next election time.
August 24, 2009 at 9:04 a.m. ( permalink | suggest removal )
ed52 (anonymous) says...
lets play a game. what would the headline be if this was a Bush policy.
DRACONIAN CUTS WILL STARVE SENIORS .
BUSH TOO STARVE CHILDREN.
BUSH SLASHES SS BENEFITS,
MILLIONS TO DIE DUE TOO BUSH SS CUTS
August 24, 2009 at 10:03 a.m. ( permalink | suggest removal )
gringolandia (anonymous) says...
I doubt it, ed. But since you went there....
Bush was such an arrogant, ignorant little brat and was totally unfit to lead our nation. That draft dodging, coke snorting brat will go down as the worst President in US history without a doubt.
All the dopes that voted for him, TWICE, have themselves to blame for the dramatic leftward shift in government in the 2008 elections.
Bush's polarizing leadership was toxic and he was so deeply hated by so many people in this country. Bush's smug attitude and arrogant ignorance is directly related to the Democrats current majority in gov't, and for Obama's rise to President of the US.
August 24, 2009 at 10:22 a.m. ( permalink | suggest removal )
gringolandia (anonymous) says...
Stated another way, Barack Obama is our President today largely because Dubya was an incompetent moron. I love the irony in that! Bush supporters are largely responsible for the emergence of their hated adversary, Barack Obama!
"Thank ya', Dubya!" lmao
August 24, 2009 at 10:31 a.m. ( permalink | suggest removal )
kyjello (anonymous) says...
gringo>
At least President Bush was a citizen of the USA, Nobama NEVER was. Buyer's remorse is on the rise as BO's poll numbers drop like Michelle O's favorable ratings as she gets off Air Force 1's plane wearing short shorts. Real freakin' classy huh?
August 24, 2009 at 10:32 a.m. ( permalink | suggest removal )
gringolandia (anonymous) says...
That's even better.
Bush sucked so badly that US citizens elected a Kenyan as President of the US.
Great point, kyjelly.
August 24, 2009 at 10:37 a.m. ( permalink | suggest removal )
scottmcx (anonymous) says...
Gringo..
1) Obama admitted using coke...
2)Obama only Graduated Harvard (social promotion?) Bush graduated from BOTH Yale and Harvard with degrees.
3) Bush could "spell military" as he sort of served in the National Guard and was rated and certified to fly jetfighters.
4) It is clear both are/were polarizing leaders
BTW I think Bush sucked. He was almost as much of a Commie as OLIAR.
We now see the seeds of a new era approching...Scares you doesn't it?
August 24, 2009 at 10:55 a.m. ( permalink | suggest removal )
gringolandia (anonymous) says...
Ok, scotty. Thanks for the "Heads up"
August 24, 2009 at 10:59 a.m. ( permalink | suggest removal )
MarshGate (anonymous) says...
A law passed in 1975 limits cost-of-living raises in 2010 and it's Obama's fault! A law passed by the Republicans in 2003 requires an increase in Drug program premiums and it is Obama's fault! Obama has been in office 7 months and people are swept out to sea while watching the effects of a hurricane, It must be Obama's fault!
August 24, 2009 at 11 a.m. ( permalink | suggest removal )
tc1 (anonymous) says...
"ed52 (anonymous) says...
lets play a game. what would the headline be if this was a Bush policy.
DRACONIAN CUTS WILL STARVE SENIORS .
BUSH TOO STARVE CHILDREN.
BUSH SLASHES SS BENEFITS,
MILLIONS TO DIE DUE TOO BUSH SS CUTS
August 24, 2009 at 10:03 a.m. ( permalink | suggest"
You got it ed52!
"as she gets off Air Force 1's plane wearing short shorts. Real freakin' classy huh?"
Let's be accurate ky, even if the libs aren't. She was Not wearing short shorts, they were bermuda shorts. She also was Not on a formal state visit but to visit a park. This is a subjective opinion for everyone but under the circumstances I don't have a problem with it. Now "short shorts" IMO would be unacceptable attire for the First Lady in any public setting and that has nothing to do with good or bad physical attributes.
August 24, 2009 at 11:07 a.m. ( permalink | suggest removal )
eyfigueroa (anonymous) says...
scottm: You can't possibly try to elevate former President Bush's status and try to lower current President Obama's stature by comparing what colleges they went to.
Dude, that was so simplistic so asinine that it almost doesn't warrant a response.
But it’s people like you that deflect true issues that are worthy of discussion by throwing in supercilious arguments such as who went to what school and who flew what planes.
Sweetheart I have more combat experience than President Bush. True enough he graduated from TWO Ivy League schools but let’s be real here, he got a Bachelor’s and a Masters. President Obama has a Law Degree from an Ivy League school and ran its Law Review. He also managed to pass the bar.
Heck Ronald Reagan only earned a Bachelor’s degree. Where does that place him?
And your crack about ‘social promotion’… That term is generally used a pejorative against Blacks and other ethnic minorities being pushed ahead in school who would otherwise be held back.
Are you man enough to say what you really mean as opposed to using euphemisms?
Are you inferring that Mr. Obama was in no way intelligent enough to get into much less graduate from Harvard and must have simply been ALLOWED to because he is Black?
I guess the neo-conservative movement’s darling Supreme Court Justice Clarence Thomas must also be of low stature in your mind, as he ADMITTED to getting into Yale via affirmative action. Is he just another Black incapable of doing well without largesse of the White man? Was Justice Thomas’ ascension courtesy of ‘social promotion’?
I don’t remember where you stand on this ‘birther’ issue, but if your 10:55 post is any indication, apparently you would rather use such juvenile taunts to belittle our current President as opposed to really debate real-world issues that WILL affect us ALL.
If all you and people who think like you got is Bush’s schoolin’ was better than Obama’s, then your ‘movement’ is in serious trouble.
And for the record, not only did I NOT vote for President Obama, I’m a staunch opponent of many of his stated policies.
But unlike you, I don’t use straw arguments to support my arguments.
I use facts that actually matter in this discourse.
And young man, (or woman), you are not going to win any arguments until you put on your big-boy pants and debate like a grown up.
Pssst... whispers in scottm's ear *President Bush also used drugs and abused alcohol to the point that he had to swear it off for life*
See how it easy it to use crap like that to try to tear someone down even if it doesn't have any bearing on his performance?
Sheesh you people are a trip!
August 24, 2009 at 12:03 p.m. ( permalink | suggest removal )
theronce (anonymous) says...
eyf, wow, after all that, I had to go back to the top to see what the story was all about. Take a breath now. (That's why I avoid arguing with a lady. I can't get a word in edgewise and I'm probably wrong anyway. So, I just shut up. That usually works better for me.)
August 24, 2009 at 12:18 p.m. ( permalink | suggest removal )
mungojerrie (anonymous) says...
Bravo, eyf! I agree: mudslinging isn't an effective way to win a debate, though I couldn't have said that nearly as eloquently as you did.
August 24, 2009 at 12:53 p.m. ( permalink | suggest removal )
ed52 (anonymous) says...
gringo , are you a member of bho's church of christ? thats the same love i felt from them.
i was talking about media bias ONLY.
August 24, 2009 at 1:20 p.m. ( permalink | suggest removal )
mb300sl (anonymous) says...
All praise the Obamessiah! Hold on to your wallets...unless you make more than $250,000...those who believe that are complete idiots! Somebody (the taxpayers) has to pay for all this BS...
August 24, 2009 at 1:27 p.m. ( permalink | suggest removal )
gringolandia (anonymous) says...
Seriously though. This is worth repeating, especially for all of you "birther's" out there that believe Obama is not a US citizen:
=========================================
Bush sucked so badly and damaged the Republican Party so severely that US citizens elected a Kenyan as President of the US.
August 24, 2009 at 2:20 p.m. ( permalink | suggest removal )
PalmettoinTexas (anonymous) says...
There is no way SS benefits don't increase...not with a socialist in charge trying to garner votes for a DEM controlled house/senate in mid term elections. Get ready for another SS wage limit increase. They won't tackle this stuff now because SS taxes are still on the table as a way to raise health care reform money. They will continue to "bait and switch" with the US people until they are voted out. Obama and his clowns are nothing but a used car dealership....no offense to used car dealers. Too bad there's no Lemon Law when it comes to Obama....we got a BIG ONE with him!!!!
Socialism just doesn’t work. Everywhere it's been tried, it's failed. If it's not stopped here, we will become just another failed nation.
August 24, 2009 at 2:20 p.m. ( permalink | suggest removal )
SCPDBLUE (anonymous) says...
Way to go COMRADE Barack Obama,you are getting the U.S. closer to being renamed the U.S.S.R,Union of Socialist States Republic.
August 24, 2009 at 2:50 p.m. ( permalink | suggest removal )
scottmcx (anonymous) says...
eyi,
The point was that those "facts" brought up by Gringo made no sense. I agree with you up to a point. But, I think both B & O suck. Their education has little bearing.
I also question why OLIAR won't release his school records. If he wasn't socially promoted that should clear it up.
I understand the "Law Review" is student run and the "head" position is "elected" by students and not based on academic merit.
August 24, 2009 at 3:20 p.m. ( permalink | suggest removal )
gringolandia (anonymous) says...
"Bush was such an arrogant, ignorant little brat and was totally unfit to lead our nation. That draft dodging, coke snorting brat will go down as the worst President in US history without a doubt.
All the dopes that voted for him, TWICE, have themselves to blame for the dramatic leftward shift in government in the 2008 elections.
Bush's polarizing leadership was toxic and he was so deeply hated by so many people in this country. Bush's smug attitude and arrogant ignorance is directly related to the Democrats current majority in gov't, and for Obama's rise to President of the US. "
What part don't you understand, scottmxdb?
August 24, 2009 at 3:22 p.m. ( permalink | suggest removal )
PalmettoinTexas (anonymous) says...
The reason Osama wont release his school records is the same reason he wouldn't release his birth certificate...it keeps the Right looking like lunatics. He has been managed very well....everything he does, every move he makes is well orchestrated. He is the ultimate Manchurian Candidate.
August 24, 2009 at 3:25 p.m. ( permalink | suggest removal )
scottmcx (anonymous) says...
Gringo...
He's not the President...OLIAR is. What part of I think Bush sucked do you not understand?
August 24, 2009 at 3:26 p.m. ( permalink | suggest removal )
gringolandia (anonymous) says...
"The reason Osama wont release his school records is the same reason he wouldn't release his birth certificate...it keeps the Right looking like lunatics"
So do you, PalmettoTexas. What is the intent behind calling President Obama "Osama"?
scum like you deserve everything bad in life.
August 24, 2009 at 3:30 p.m. ( permalink | suggest removal )
scottmcx (anonymous) says...
Gringo can't get over the fact that OLIAR's approval rating is heading SOUTH! She thought she'd "never have to worry about paying for gas, paying her rent or buying food again", like that lady at the OLIAR rally during the election.
The "brick" of reality has hit her in the head.
August 24, 2009 at 3:34 p.m. ( permalink | suggest removal )
Salena (anonymous) says...
OMG! What was the 1st Lady thinking when she decided to wear shorts to hike through the desert? She should know that no self-respecting lady, let alone the FIRST LADY, would EVER wear a pair of shorts to trek through the desert at the Grand Canyon. The gall of that woman! She show that the proper attire for such a trip by any 1st Lady is a boucle fabric pant suit, complete with blazer and stiletto pumps! Lol!
Oh, don't get me started on the nutty "Birthers"! It's not enough that there was an actual birth announcement in an Hawaiian news paper 4 days after Pres. Obama's birth and that officials have authenticated the birth certificate more then once. I guess his mother knew that her newborn son would be running for POTUS one day and decided to have the paper publish this record back in 1961 and to further her scheme, had Hawaii cook up an authentic birth certificate so that the "Kenyan" could obtain the highest office in the US. Clever girl!
As far as Social Security goes, at least the people are still getting it, me and others my age won't get it at all at the rate we are going now. This has been know for years! Also, see charlestowne2's post, it explains a lot!
August 24, 2009 at 3:44 p.m. ( permalink | suggest removal )
Salena (anonymous) says...
And to clarify my opinion, I think it sucks that these people's money is being messed with!
August 24, 2009 at 3:55 p.m. ( permalink | suggest removal )
scottmcx (anonymous) says...
The entire Medicare, Medicaid, Social Security mess is a PONZI SCHEME..Almost 100 TRILLION is unfunded. It was based on "a perpetual increase in taxpayers (suckers) funding an ever increasing, but smaller, number if beneficiaries". That is the definition of a PONZI scheme.
Arrest Congress, sieze the assets of every member of Congress and/or their immediate families who have held office since Roosevelt (for SSI) and Johnson (for Medicare/aid).
August 24, 2009 at 4:11 p.m. ( permalink | suggest removal )
eyfigueroa (anonymous) says...
"The reason Osama wont release his school records is the same reason he wouldn't release his birth certificate...it keeps the Right looking like lunatics."
And the Best Post of the Day Award goes to...
PalmettoinTexas!
August 24, 2009 at 4:20 p.m. ( permalink | suggest removal )
tc1 (anonymous) says...
SS will make up a big part of our retirement income Soon. The law is to cover Inflation and we appreciate it. There is No inflation this year so there is No increase.
I said that SS is a big PART of our retirement income. That should tell you that we are in No way "rich". My wife and I have done without, saved and invested responsibly for many years because SS was always presented as a Supplement to retirement income. For those in trouble because they for legitimate reasons could not save more I feel very sad.
For those who have the newest, latest, best of everything including automobiles, ours are 17 and 9 years old, huge mortgages, no savings, etc. and have a problem Tough Shrt is the nicest thing I can say. Even though we did the responsible thing we will one way or another end up having the dollars that we have by sacrificing to pay, through increased taxes, for others irresponsibility and excessive, short sighted selfish indulgence.
August 24, 2009 at 4:37 p.m. ( permalink | suggest removal )
tc1 (anonymous) says...
"And the Best Post of the Day Award goes to...
PalmettoinTexas!"
Second!
August 24, 2009 at 4:40 p.m. ( permalink | suggest removal )
Lovely_One (anonymous) says...
I have to agree with the "Best Post of the Day Award"!!!!!!
August 24, 2009 at 4:55 p.m. ( permalink | suggest removal )
kyjello (anonymous) says...
lovely-one>
Drop dead. Like we need your blessing on a previous post. Hussein still sucks.
August 24, 2009 at 5:28 p.m. ( permalink | suggest removal )
Lovely_One (anonymous) says...
kyjello, thanks so much for taking the time to show me some poster love. Don't be mad because you are sToOpiT and gullible enough to believe everything Hannity, Beck, Limbaugh, et al tell you about the President's citizenship. "The birth certificate is a fake!" Haha!
August 24, 2009 at 9:19 p.m. ( permalink | suggest removal )
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