Annual Cost Of Living Increase

The social security annual cost of living increase is referred to as a "COLA" determination or the annual "Cost of Living Adjustment." Since 1975, the social security administration's general benefit increases have been based on increases in the cost of living as measured by the Consumer Price Index. The automatically increased amounts, if any, are published in the Federal Register each year in late October. Automatic increases affect OASDI benefits, Retirement benefits, and Supplementary Security Income benefits. The taxable maximum for a year is the maximum earnings subject to the Social Security tax. While payment calculation bases are used to set payments to providers of rehabilitation services.

Fast Facts

  • There will be no payable Cost of Living Increase in the year 2010.
  • Cost of Living Adjustments provide annual increases in benefit payments made from OASDI and SSI programs. The national average wage index is used to index earnings for initial benefit computations.

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