No Cost of Living Increase in 2010
for Social Security Recipients

Downloadable PDF on COLA for 2010

Because consumer prices were down over the past year, Social Security and Supplemental Security Income benefits will not automatically increase in 2010. 

This will be the first year without an automatic Cost-of Living Adjustment (COLA) since they went into effect in 1975.

“Social Security is doing its job helping Americans maintain their standard of living,” Michael J. Astrue, Commissioner of Social Security said.  “Last year, when consumer prices spiked, largely as a result of higher gas prices, beneficiaries received a 5.8 percent 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.”

The COLA announcement usually generates considerable public interest.  The attached press release and fact sheet on the COLA provision should help explain this issue to qualifying clients.

In addition, Social Security has created a prominent link on the home page at www.socialsecurity.gov/cola. This links to a portal site with useful information about the COLA, as well as frequently asked questions (FAQs).