CBO Projects No Cost-of-Living Raise for Next Three Years

In his blog today, Douglas W. Elmendorf, the director of the Congressional Budget Office, announced that he does not anticipate that retirees, specifically those receiving Social Security benefits, will receive a cost-of-living adjustment (COLA) in January. Since by law, military retirees receive the same COLAs as Social Security beneficiaries, their won’t be any COLA for them in January either.

Looking forward, Mr. Elmendorf believes that inflationary pressures will be very low over the next few years and that the next cost-of-living adjustment will come in January of 2013, and is projected to be 0.8 percent.

even though CBO is projecting price increases in fiscal years 2010 and 2011, those annual price increases would not be large enough to offset the price declines that have already taken place in recent months.

Beneficiaries in other federal programs, including civil service and military retirement, and those drawing veterans’ compensation and pensions, also will not receive COLAs in 2010, 2011, or 2012, by CBO’s projections, because their COLAs are tied to Social Security’s under current law.

Mr. Elmendorfs explaination can be found at http://cboblog.cbo.gov/?p=235

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  1. Clarence Dawson SR says:

    I do not agree not giving our cost of living to us seniors.
    If we work before we are at the age of 66years and four mount,what ssi has told me,we can only make x number of dollars per year.So if the goverment is going to take away our cost of living then it should be changed to let the seniors make all they can and still get the same amount on their ssi checks,For their are alot of us that is in good health that can still work at a good wage per day,but do not for the government has set a limit in which i do not under stand,for as much as seniors can make along with their regular ssi amount would surly help the accomany.With out giving us this this right,then we need our cost of living raise

  2. Almeda Ann Dawson says:

    I am not able to hold a job,and with what i get and my husban gets it is hard for us.We need the raise.Our house payment has went up,the cost of food,fuel and many other itams and whwt little $% we get helps.

  3. Doris D. Tarlton says:

    That is so wrong that we don’t get that raise.
    We that are not able to work to make more money can’t hardly making it. We need more money to live.
    We old people worked hard in the pass for our ss.
    It is not fair to us.