Many people in Kissimmee rely on assistance from the government to make ends meet and help them survive. No matter the reason a person needs Social Security disability benefits, any increase in the benefits can be beneficial. Periodically, the Social Security administration will increase the amount that people receive. It’s important for those who are receiving benefits or seeking benefits to keep track of the SSA news to know if and when there will be a cost-of-living adjustment, also referred to as COLA.
In January 2015, the COLA will be increased by 1.7 percent for approximately 64 million people. More than 58 million people who receive Social Security will have their benefits increased in January. SSI beneficiaries will receive their increase on the last day of December 2014.
The idea behind COLA is to ensure that those receiving benefits are able to maintain the same level of purchasing power when calculated equated with inflation. In other words, as prices on the marketplace increase, the Social Security administration tries to account for that by providing the COLA.
Whether or not there will be a COLA increase depends on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) and its level for the third quarter of the last year a COLA was given to the present. If there wasn’t an increase, then there won’t be a COLA increase. The Bureau of Labor Statistics in the Department of Labor determines the CPI-W and it is the measure that the SSA uses for the calculation of COLA.
The COLA is only one aspect of SSD information that can be confusing to recipients and those who are seeking benefits. Because the amount of money received is often the only means of income that a person who has injuries or illness will have, the amount can be important. When there are questions surrounding various factors under current discussion with the Social Security Administration, getting assistance from a qualified legal professional can be useful.
Source: SSA.gov, “Cost-Of-Living Adjustment (COLA) Information for 2015,” accessed on Dec. 22, 2014