Provisions Affecting CostofLiving Adjustment
An annual costofliving adjustment (COLA) applies to benefits after initial eligibility. We provide a summary list of all options (printerfriendly PDF version) in this category. For each provision listed below, we provide an estimate of the financial effect on the OASDI program over the longrange period (the next 75 years) and for the 75th year. In addition, we provide graphs and detailed single year tables. We base all estimates on the intermediate assumptions described in the 2023 Trustees Report.
Choose the type of estimates (summary or detailed) from the list of provisions.
Number  Table and graph selection 

A1 
Starting December 2024, reduce the annual COLA by 1 percentage point.
Summary measures and graphs
(PDF version)
Detailed single year tables (PDF version) Memorandum containing this or a similar provision: 
A2 
Starting December 2024, reduce the annual COLA by 0.5 percentage point.
Summary measures and graphs
(PDF version)
Detailed single year tables (PDF version) Memorandum containing this or a similar provision: 
A3 
Starting December 2024, compute the COLA using a chained version of the consumer
price index for wage and salary workers (CPIW). We estimate this new computation
will reduce the annual COLA by about 0.3 percentage point, on average.
Summary measures and graphs
(PDF version)
Detailed single year tables (PDF version) Memoranda containing this or a similar provision: 
A4 
Starting December 2026, compute the COLA using a chained version of the consumer
price index for wage and salary workers (CPIW). We estimate this new computation
will reduce the annual COLA by about 0.3 percentage point, on average. The new COLA
will not apply to DI benefits. It will apply to OASI benefits, except for those
of formerly disabledworkers who converted to retiredworker status.
Summary measures and graphs
(PDF version)
Detailed single year tables (PDF version) Memorandum containing this or a similar provision: 
A5 
Starting December 2024, add 1 percentage point to the annual COLA for
beneficiaries who have lived past a "specified age". The "specified age"
is the sum of: (1) 65 and (2) the unisex cohort life expectancy at age 65.
Summary measures and graphs
(PDF version)
Detailed single year tables (PDF version) Memorandum containing this or a similar provision: 
A6 
Starting December 2025, compute the COLA using the Consumer Price Index
for the Elderly (CPIE). We estimate this new computation will increase
the annual COLA by about 0.2 percentage point, on average.
Summary measures and graphs
(PDF version)
Detailed single year tables (PDF version) Memoranda containing this or a similar provision:

A7 
Starting December 2024, reduce the annual COLA by 1 percentage point, but
not to less than zero. In cases where the unreduced COLA is less than 1 percentage
point, do not carry over the unused reduction into future years.
Summary measures and graphs
(PDF version)
Detailed single year tables (PDF version) Memorandum containing this or a similar provision: 
A8 
Starting December 2024, for OASI beneficiaries only (DI beneficiaries would
only be affected when their benefit converts to OASI at NRA), the annual COLA
would be based on the chainweighted version of the CPIU.
Summary measures and graphs
(PDF version)
Detailed single year tables (PDF version) Memoranda containing this or a similar provision: 
A9 
For single/headofhousehold/marriedfilingseparate taxpayers with modified
adjusted gross income (MAGI) below $108,700 and for joint filers with MAGI below
$217,400 for December 2025 ($85,000 and $170,000 multiplied by estimated CPIU
for 20182025), use the chainweighted version of the Consumer Price Index for
All Urban Consumers (CCPIU) to calculate the costofliving adjustment (COLA),
beginning with the December 2025 COLA. For those beneficiaries whose MAGI is
above these thresholds, provide no COLA. Use prior tax year income data for this
determination. Use the chainweighted CPI for the COLA for years prior to benefit
receipt. Index the eligibility income threshold amounts to the CPIU after
December 2025.
Summary measures and graphs
(PDF version)
Detailed single year tables (PDF version) Memorandum containing this or a similar provision: 