The news has been going around for some time that there will be no cost of living adjustment in Social Security benefits (including retirement and disability benefits) for the next two years, 2010 and 2011. However, it looks like the real amount of benefits will actually decrease for many.
The trustees who oversee Social Security are projecting there won’t be a cost of living adjustment (COLA) for the next two years. … By law, Social Security benefits cannot go down. Nevertheless, monthly payments would drop for millions of people in the Medicare prescription drug program because the premiums, which often are deducted from Social Security payments, are scheduled to go up slightly.
Ouch!
Keep in mind that if you are receiving Supplemental Security Income (SSI) and not Social Security Disability Insurance (SSDI), then you are receiving Medicaid, not Medicare and not subject to this premium increase. However, your benefits in the next two years are also locked and will not increase.
via Gazette.com : Social Security payments will shrink for many next year.
