An annual cost-of-living adjustment (COLA) applies to benefits after initial eligibility. We provide a summary list of all options (printer-friendly PDF version) in this category. For each provision listed below, we provide an estimate of the financial effect on the OASDI program over the long-range 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 2018 Trustees Report.

Choose the type of estimates (summary or detailed) from the list of provisions.

Number | Table and graph selection |
---|---|

A1 |
Starting December 2019, 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 2019, 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 2019, compute the COLA using a chained version of the
consumer price index for wage and salary workers (CPI-W). 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 2021, compute the COLA using a chained version of
the consumer price index for wage and salary workers (CPI-W). 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 disabled-workers
who converted to retired-worker status.
Summary measures and graphs
(PDF version)
Detailed single year tables (PDF version) Memorandum containing this or a similar provision: |

A5 |
Starting December 2019, 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.
Detailed single year tables (PDF version) Memorandum containing this or a similar provision: |

A6 |
Starting December 2020, compute the COLA using the Consumer Price Index for
the Elderly (CPI-E). 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 2019, 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.
Detailed single year tables (PDF version) Memorandum containing this or a similar provision: |

A8 |
Starting December 2019, 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 chain-weighted version of the CPI-U.
Detailed single year tables (PDF version) Memorandum containing this or a similar provision: |

A9 |
For single/head-of-household/married-filing-separate taxpayers with
modified adjusted gross income (MAGI) below $89,000 and for joint filers
with MAGI below $178,000 for December 2020 ($85,000 and $170,000 multiplied
by estimated CPI-U for 2019-2020), use the chain-weighted version of the
Consumer Price Index for All Urban Consumers (C-CPI-U) to calculate
the cost-of-living adjustment (COLA), beginning with the December 2020
COLA. For those beneficiaries whose MAGI is above these thresholds,
provide no COLA. Use prior tax year income data for this determination.
Index the eligibility income threshold amounts to the CPI-U after
December 2020.
Detailed single year tables (PDF version) Memorandum containing this or a similar provision: |