Social Security Administration

Recently the administrators of Social Security announced that the beneficiaries of social security would not get any increase in calculation for cost of living. Those who have been retirees for the first time have not had any increase sine 1975. The current financial crisis with raging unemployment and foreclosures has made their position more vulnerable.

Calculation of cost of living is related to rate of inflation between the third quarter of this year and one of the previous year. This year the rate was negative because of a sharp fall in cost of energy.

According to the law, security benefits cannot fall. However premiums are set to increase because of the Medicare programme on drugs by 11% in 2010. Seniors have these premiums cut from the benefit and consequently the money they get at hand will decrease said Barbara Kennelly of National Committee to Preserve Social Security and Medicare.

Recently President Barack Obama addressed the legislators asking them to give the nod to a one time payment amounting to $250 for the elders. It would cost the administration $13 billion. This would lead to an increase of 2% of what the recipients of social security get. The plan has got the support of Michael Astrue, the Social Security Commissioner.

Astrue said, “Social Security is doing its job helping Americans maintain their standard of living. Last year when consumer prices spiked, largely as a result of higher gas prices, beneficiaries received a 5.8% COLA, the largest increase since 1982. 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.”

Congress is also being called upon by AARP to make available payment for the elders. Tom Nelson of AARP said, “For over three decades, millions of Americans have counted on annual increases to help make ends meet. In this economy, having this protection is even more critical for the financial security of all older Americans.”

Compared to last August consumer inflation showed a modest increase. It was kept back because low costs in food and housing according to date provided by the government. The Labor Department noted that the consumer price index increased 0.2% in September. This had been forecast by the analysts. In August it had increased 4%. The negligible rise in September came because of fall in food index 0.1%.

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