Higher Social Security COLA seen for 2012, but…

While Social Security recipients won’t be learning officially about a cost of living adjustment (COLA) for 2012 until mid-October, early indications point to a slight increase with a BIG BUT --- that should spur comments via letters to the editor sections of newspapers and complaints to members of Congress and the White House, learns Grumpy Editor.

In short, it’s like a magic trick.  Now you see it, now you don’t.

That should provide material for alert editorial page writers, especially those who have been focusing on inflation in recent weeks.

Social Security trustees (see box) project a 1.2  percent COLA.  But the trustees also project the Medicare Part  

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Nearly all trustees linked to President Obama

The Social Security board of trustees is comprised of six members, four of them in high-ranking federal government positions: Timothy F. Geithner, Treasury secretary and managing trustee; Michael J. Astrue, Social Security commissioner; Kathleen Sebelius, Health and Human Services secretary, Hilda L. Solis, Labor secretary, and two public trustees nominated by President Barack Obama.

Astrue was appointed by former President George W. Bush.

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B premium for most will jump to $113.80 a month next year from $96.40 a month this year, on par with 2010.

Unless further inflation (which most media and government officials continue to label “tame”) registers on government computers between now and September when the 2012 Social Security COLA is calculated, it will mean less in-pocket monthly Social Security payments for most of the 45 million recipients next year than in 2011.

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For an update, see the Oct. 19, 2011 GrumpyEditor.com: Higher Medicare cost cuts into 2012 Social Security COLA.

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Last COLA was in 2009.

As an example, a monthly Social Security payment this year of $1,000, less $96.40 for Medicare Part B premium, nets a recipient $903.60.

For 2012, figuring current projections, a $12 increase to $1,012 monthly payment, less Medicare Part B premium of $113.80, will give that person $898.20 --- or $5.40  less per month in pocket.  

That’s how an increase (certainly to be emphasized) actually winds up as a decrease.

But wait.  Monthly benefits could be even less.

President Barack Obama projects an under one percent COLA (0.9 percent, to be exact) in his spending proposal for the budget year starting Oct. 1.

 

Comments

[Donna Stevens]

I am not a retiree,but I worked all my life.I got hurt so I am unable to work. So try raising 5 kids on a month to month check. My dad is a retireebut my mom they refuse to give it to her because of this obama mess. If anyone votes obama this time that means that they are not tired`of starving. Well i am tired of you messing with my livley hood and my children. You think that you have it all figured out well try living in one of our shoes that has to live on disability we have no choice my vote will not be for obama believethat....

[Hallie Adams]

I don't think the big shots in washington are going hungery. I can't help my disability and nobody will hire.I have been told to work on the computer, but nobody knows where I start. There are so many scams too who can tell me what is real and I am scared. I will put my e-mail if anyone has an idea.Hallieadams@bellsouth.net. Please don't hurt me. I need help.

[Charles Richardson]

All these comments against Obama.If he has nothing to do with Cola then why are you bashing him?You are only contradicting yourself.Who are you going to elect?The Republicans want to get rid of Social Security and you say Obama has no clue.What world are you living in,surely not this one.

[Ronaald Sommer]

In order to get some reasonable trust in Washington, there has to be efforts on both sides of the aisle. This is the worst I have ever seen from both parties making a mockery of why they were sent to Washington.The time is fast approaching where a third party will enter and then perhaps we can get the work done that our failed elected officals have not done.

[Ronaald Sommer]

We as seniors are taking all of the bad deals as this is the easy way out for the politicans, the S/S and Medicare must come off the table, with 45 million people paying into the system at about 5 billion 122 milllion each month and this being payed by the seniors what will they want next. There are ways to reduce the debt and not touch these two programs but it would take some balls to get it done,this is where we fall short. Our elected officals have forgotten why they were elected for and need a rude awakeing.

[Jim Weisse]

Cost of living increase due for 2012?

I understand that SSA Cola is based upon the July, August and September CPI-W and usually compaired to the same period the prior year. For the past two years it has fallen compaired to the 2008 level and as a result there has been no Cola.

Today I just added the spread between the 2011 and 2008 cpi-w for June, July and August and it is averaging 7.949%, if this trend continues does that mean there may actually be a cola in my Januaey SSA & VA Disability payments?

Time will tell but it will require SSA to do a lot of explaining if there is no COLA in my checks in January.

[Barbara Habacht]

I believe everything that this government says...so I convinced my husband to push the car when we go shopping...it is slow but we use no gasoline. As to food, we only eat food raised by "green" methods...so we are losing weight. As to medical...again, my husband has agreed not to get treated for anything.
I look forward to stronger unions and another four years for Obama,

[A Facebook User]

How about adding FOOD AND GASOLINE into the Cost Of Living? Seniors can't afford luxury autos, vacations, stocks, etc. Also $113. a month for medical coverage is more than a lot of people not on Medicare pay. This doesn't include the 20% of every doctor visit or hospital stay.

[Frank Newland]

All I can say is HAPPY BIRTHDAY Mr. "O". I hope your folks enjoyed their $35,000 dinner. Only 16 more months and we will see real change.

[Amanda Wheat]

This is just another eye opener for us all. Obama is a true FAKE & FRAUD. He no where cares about the U.S, he really isn't trying to help this country out with any part of what he does. He's just the past president in disguise. I don't believe he has any knowledge of what politics are or what they are about...

[me.yahoo.com/a/YN9mn3cBrIvdZggj0X0EZ9NtfUCJblw-]

wow it is a shame that it has come to this. the seniors who helped build this country the last 40 years are now being punished for there efforts. O'Bama needs to get down to the business of government and get more jobs created. Never mind giving our money away. The stimulus did nothing to create jobs. IF you vote for him you will be hurting our ecomomy.

[me.yahoo.com/a/ZY7JRuwXh.LzhQhIz5rJOgiYkuHIVQ--]

How can O'Bama "project" a 0.9 percent COLA for 2012. He doesn't have anything to do with the COLA. The COLA is based on the (CPI) Cost of Living in the 3rd quarter of 2010, compared to the (CPI) cost of living in the 3rd quarter of 2011. O'Bama shouldn't have his fingers in it or the Civil Service Retirement System, that is also based on the CPI. He shouldn't be fooling with it at all. It is the retiree's money, not his or the Federal Government. If the 2012 COLA is going to be based on the CPI for 2012 compared to the CPI in 2009, that is totally "STUPID." Everything has gone up terribly since 2009 and O'Bama, you and everyone else knows that, I don't care what the figures read. This is not a Fairy Tale, this is real life, so lets all be real. Anyone that would vote to re-elect O'Bama, doesn't have a clue about what is going on in this Country. Where are you Social Security retirees and CSRS retirees. We have to stop taking this lying down.