Obama Continuing to Push Changes for Cost-of-Living Adjustment
February 21st, 2014|
February 21, 2014
It can be a struggle to make ends meet for those who receive Social Security Disability Benefits as their only source of income. In an effort to help these individuals, the federal government offers a Social Security cost-of-living adjustment (COLA) to each beneficiary to offset the inflated costs of necessary goods and services. President Barack Obama is now pushing for reforms to this system that would significantly reduce the COLA claimants receive each year.
A report from All Voices stated current laws use something called a Consumer Product Index (CPI) to determine the annual COLA amount for beneficiaries. This system examines the rise in costs of certain goods and services, then uses these numbers in an equation to determine how much each beneficiary should receive to offset these rises in cost.
Under the chained CPI system President Obama is proposing, it is taken into consideration that when the cost of one good or service rises, Americans will seek a cheaper alternative. The lower costs of alternative products are then used to determine the annual COLA, thus lowering the increase in payments each claimant receives.
The Social Security Disability Lawyers with Fleschner, Stark, Tanoos & Newlin recognize how complex the laws surrounding Social Security disability benefits can be. That’s why the firm encourages citizens to discuss their claim with a qualified attorney in order to help ensure they receive their maximum benefits.