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Provisions Affecting Cost-of-Living Adjustment
|Information on the annual cost-of-living adjustment (COLA)||
An annual cost-of-living adjustment (COLA) applies to benefits after initial eligibility. For the provisions listed below, we provide estimates 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 detailed single year tables.
All estimates are based on the intermediate assumptions described in the 2009 Trustees Report. Choose the type of estimates (summary or detailed) from the list of provisions.
|Number||Table and graph selection|
|A1||Beginning in December 2010, reduce the annual COLA by 1 percentage point.|
|A2||Beginning in December 2010, reduce the annual COLA by 0.5 percentage point.|
|A3||Starting with the December 2010 cost-of-living adjustment (COLA), compute the COLA using a chained version of the consumer price index for wage and salary workers (CPI-W). This new computation is estimated to result in an annual COLA that is 0.3 percentage point less, on average.|
|A4||Starting with the December 2012 cost-of-living adjustment (COLA), compute the COLA using a chained version of the consumer price index for wage and salary workers (CPI-W). This new computation is estimated to result in an annual COLA that is 0.3 percentage point less, on average. The new COLA would not apply to DI benefits and would apply for all OASI benefits, except for those who are converted from disabled worker to retired worker status.|
|A5||Beginning December 2010, add 1 percentage point to the annual cost-of-living adjustment for OASDI monthly benefits for beneficiaries who have lived past a "specified age", which reflects their age 65 life expectancy. The "specified age" is based on the beneficiary's year of birth and is determined as the sum of: (1) 65 and (2) the unisex cohort life expectancy at age 65 for the Social Security area population with the same year of birth as the beneficiary.|
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Last reviewed or modified September 28, 2010