No cost-of-living adjustment for Social Security in 2016?

[n2doc]

Lost in the news surrounding the release of the 2015 Social Security Trustees report is the likelihood that Social Security beneficiaries won't see a cost-of-living adjustment increase, or COLA, in 2016. According to the Trustees, Social Security beneficiaries can expect to receive a COLA increase of 0.0 percent. That's right ... a goose egg.

But first, let's review the more-discussed news from the report. While the outlook for Social Security's combined trust funds is slightly improved, the overall trend for program finances is still very negative. The Trustees report a one-year improvement in the estimated exhaustion dates for both Social Security's Old-Age and Survivors Insurance (OASI), or retirement, trust fund (from 2034 to 2035), as well as its combined OASI and Disability Insurance (DI) trust funds (from 2033 to 2034). The Trustees again project the disability trust fund will be depleted in the fourth quarter of 2016 — just in time for the general elections.

While most think of Social Security as a single program, the OASI and DI trust funds are legally separate because they are designed to serve different purposes and different populations. This split is of urgent importance for DI beneficiaries, as — absent legislative action to shore up the program's finances — benefits will automatically be cut by almost 20% upon the trust fund's depletion, since by law the program can only pay out in benefits what it receives in revenue.

Returning to the issue of the COLA, as the Trustees point out on page 113 of the report:

"Volatility in oil prices has resulted in substantial volatility in recent cost-of-living adjustments. A large cost-of-living adjustment in December 2008 was followed by no cost-of-living adjustments in December 2009 and December 2010. More recent volatility in oil prices has again affected the CPI. As a result, projections under the intermediate- and high-cost assumptions do not have a cost-of-living adjustment for December 2015."

more

http://www.marketwatch.com/story/no-cost-of-living-adjustment-for-social-security-in-2016-2015-07-28?dist=beforebell

Who needs chained CPI when the regular one can 'justify' zero increases?

[shraby]

1. That figures! Everything we actually use goes up in price, but income?

Not a chance.

[hobbit709]

2. I'm so happy that the whopping big $14/mo I got this year will have to last 2 years.

[fredamae]

3. "Who needs chained CPI when the regular one can 'justify' zero increases?"

It IS CPI!
What do the candidates have to say about that?

[tularetom]

4. That's only the first step

Now if they can just find a way to actually reduce benefits...

[dixiegrrrrl]

9. Inflation is doing that for them.

50% increase in food prices alone in the last 5 years have effectively reduced budgets.

And if the Medicare premiums go up, that will further "reduce" benefits.

[Triana]

5. You can bet that Republicans will use every opportunity in election year to GUT DI

They will insist that if it's shored up in any way that it be "paid for" not by increasing the tax slightly, or raising the damn cap above which no one pays the tax, but rather by CUTTING social security.

It's their window to FINALLY START DESTROYING one of the most successful social programs in the US that they've HATED with a passion since its inception.

This is going to HURT a lot of people. Not just those on DI but anyone ever expecting to receive Social Security.

If Democrats (lazy do-nothing DWS herself) don't RUN ON THIS ISSUE and USE it as a battering ram against Republicans, they're NUTS! They simply MUST do so.

[mnhtnbb]

6. How about volatility in eggs and milk prices?

Most seniors do very little driving, but they do eat all the time...I hope. I know I do!

[PatrickforO]

7. Well, Republicans do like the UN-COLA better...

[nruthie]

8. I don't much like to eat anyway.

[Recursion]

10. The CPI is negative this year

What do you want SSA to do?

[Elwood P Dowd]

11. CPI calculations are a joke.

Increases in my costs just for food and electricity have been far greater than my COLA the past few years. Just those two items! Oh well, I should have known that corporate cheerleaders like you would defend this shit. You never saw a big business sponsored middle class job killing fake free trade or outsourcing deal you didn't fall in love with.

[Recursion]

12. So what changes would you make to the CPI? (nt)