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No COLA for Social Security Next Year

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There will be no increase in Social Security benefits in 2001, the Social Security Administration announced today.

The Social Security Act provides for an automatic increase in Social Security retirement and disability benefits when there is an increase in the Consumer Price Index from the third quarter of the last year a cost-of-living adjustment (COLA) was determined to the third quarter of the current year.

Citing data from the Bureau of Labor Statistics, the SSA noted there has been no increase in the index since the third quarter of 2008, so there can be no COLA in 2011.

On a brighter note, SSA points out that since there is no COLA, the statute also bars a change in the maximum amount of earnings subject to the Social Security tax as well as the retirement earnings test exempt amounts.