Senate Blocks Changes To The Way Disability COLAs Are Figured
April 15th, 2013|
April 15, 2013
The United States Senate recently voted against a proposed bill that would have significantly changed the way increases in payments to those receiving Social Security Disability Benefits would be figured.
Current law allows for disability payments to be reevaluated and adjusted each year to compensate for increased costs for everyday living expenses such as food, utilities, transportation, housing, etc. These costs are based on a consumer price index that averages similar expenses occurred across the country.
President Obama proposed that Cost-Of-Living-Adjustments (COLAs) now be figured using a “chained” consumer price index that assumes if the prices for a certain commodity rise, Americans will seek alternative products.
An Article from VT Digger stated using the new “Chained” consumer price index would significantly cut benefits increases to the roughly 58 million current disability recipients. Social Security recipients who are 65-years-old or over could see a loss of as much a $650 annually over the next decade and more than $1,000 annually by the time they are 85-years-old.
Senators blocked the bill last month, claiming taking from those who are most in need of assistance is not the way to solve the nation’s budgetary issues.
The law firm of Fleschner, Stark, Tanoos & Newlin and their team of Social Security Disability Attorneys have an understanding of the complexities that can be associated with receiving government assistance. The firm encourages anyone who is considering filing a claim for benefits to discuss their legal options with an attorney.