I pulled this off of Yahoo News.
By STEPHEN OHLEMACHER, Associated Press Writer Stephen Ohlemacher, Associated Press Writer – 24 mins ago
WASHINGTON – Millions of older people face shrinking Social Security checks next year, the first time in a generation that payments would not rise. The trustees who oversee Social Security are projecting there won't be a cost of living adjustment (COLA) for the next two years. That hasn't happened since automatic increases were adopted in 1975.
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.
"I will promise you, they count on that COLA," said Barbara Kennelly, a former Democratic congresswoman from Connecticut who now heads the National Committee to Preserve Social Security and Medicare. "To some people, it might not be a big deal. But to seniors, especially with their health care costs, it is a big deal."
Cost of living adjustments are pegged to inflation, which has been negative this year, largely because energy prices are below 2008 levels.
Advocates say older people still face higher prices because they spend a disproportionate amount of their income on health care, where costs rise faster than inflation. Many also have suffered from declining home values and shrinking stock portfolios just as they are relying on those assets for income.
"For many elderly, they don't feel that inflation is low because their expenses are still going up," said David Certner, legislative policy director for AARP. "Anyone who has savings and investments has seen some serious losses."
About 50 million retired and disabled Americans receive Social Security benefits. The average monthly benefit for retirees is $1,153 this year. All beneficiaries received a 5.8 percent increase in January, the largest since 1982.
More than 32 million people are in the Medicare prescription drug program. Average monthly premiums are set to go from $28 this year to $30 next year, though they vary by plan. About 6 million people in the program have premiums deducted from their monthly Social Security payments, according to the Social Security Administration.
Millions of people with Medicare Part B coverage for doctors' visits also have their premiums deducted from Social Security payments. Part B premiums are expected to rise as well. But under the law, the increase cannot be larger than the increase in Social Security benefits for most recipients.
There is no such hold-harmless provision for drug premiums.
Kennelly's group wants Congress to increase Social Security benefits next year, even though the formula doesn't call for it. She would like to see either a 1 percent increase in monthly payments or a one-time payment of $150.
The cost of a one-time payment, a little less than $8 billion, could be covered by increasing the amount of income subjected to Social Security taxes, Kennelly said. Workers only pay Social Security taxes on the first $106,800 of income, a limit that rises each year with the average national wage.
But the limit only increases if monthly benefits increase.
Critics argue that Social Security recipients shouldn't get an increase when inflation is negative. They note that recipients got a big increase in January — after energy prices had started to fall. They also note that Social Security recipients received one-time $250 payments in the spring as part of the government's economic stimulus package.
Consumer prices are down from 2008 levels, giving Social Security recipients more purchasing power, even if their benefits stay the same, said Andrew G. Biggs, a resident scholar at the American Enterprise Institute, a Washington think tank.
"Seniors may perceive that they are being hurt because there is no COLA, but they are in fact not getting hurt," Biggs said. "Congress has to be able to tell people they are not getting everything they want."
Social Security is also facing long-term financial problems. The retirement program is projected to start paying out more money than it receives in 2016. Without changes, the retirement fund will be depleted in 2037, according to the Social Security trustees' annual report this year.
President Barack Obama has said he would like tackle Social Security next year, after Congress finishes work on health care, climate change and new financial regulations.
Lawmakers are preoccupied by health care, making it difficult to address other tough issues. Advocates for older people hope their efforts will get a boost in October, when the Social Security Administration officially announces that there will not be an increase in benefits next year.
"I think a lot of seniors do not know what's coming down the pike, and I believe that when they hear that, they're going to be upset," said Sen. Bernie Sanders, an independent from Vermont who is working on a proposal for one-time payments for Social Security recipients.
"It is my view that seniors are going to need help this year, and it would not be acceptable for Congress to simply turn its back," he said.
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Great we come right behind all of this ......" President Barack Obama has said he would like tackle Social Security next year, after Congress finishes work on health care, climate change and new financial regulations.
And who made and paid for all of this in the last 50 years..........The ones that held this nation together, Never fear our beloved President is on another 10 day Vacation since he had to work for one day. :roll:
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DO NOT PROCEED ANY FURTHER IF YOU LIKE THIS ADMINISTRATION AND WHAT THEY ARE TRYING TO DO. Since it has nothing to do with the forum and why we are here.
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This guy beat me to it ... I wanted to put one of these bumper stickers up for sale. As normal I am a day late and a dollar short.
Go to .... http://www.zazzle.com/joker+obama+gifts for a wide assortment of the Obama Joker items.
Not pushing his web site or sales of the items , just saying what I am thinking about to express my dissatisfaction.
If you did not read the warning ......This is not an expression or in any way associated with this forum , it is my own person thoughts......Just remember you will be older each day and be a Geezer later on.
Am I mad , you take a guess , the property value has gone down on this house , even with the improvements we have done , the property taxes have gone up , way up. Taxes on just about everything else has gone up and the quality has gone down. The utilities increase every time you turn around and the service decreases. He&& everything increases except for the stuff I have worked for all my life to have and counted on in the so called Golden Years.
Emergence services , Fire and medical , if the respond there is a sir charge for that response , the taxes we pay are suppose to cover that but they don't , I'm waiting and the next thing will be the cop at the door asking if you called and if you did to insert your charge card in the scanning unit so you can be charged for the call and them responding.
Vehicle registration is going to almost doubled along with the drivers license fees in November.
No idea about where you live but it is going to he!! in a hand basket down here while the politicians give them selves some nice raises.
The stuff in Washington sure flowed down hill real quick. Our local elected crooks ( politicians ) sure picked up on the trend in a hurry. :lol:
By STEPHEN OHLEMACHER, Associated Press Writer Stephen Ohlemacher, Associated Press Writer – 24 mins ago
WASHINGTON – Millions of older people face shrinking Social Security checks next year, the first time in a generation that payments would not rise. The trustees who oversee Social Security are projecting there won't be a cost of living adjustment (COLA) for the next two years. That hasn't happened since automatic increases were adopted in 1975.
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.
"I will promise you, they count on that COLA," said Barbara Kennelly, a former Democratic congresswoman from Connecticut who now heads the National Committee to Preserve Social Security and Medicare. "To some people, it might not be a big deal. But to seniors, especially with their health care costs, it is a big deal."
Cost of living adjustments are pegged to inflation, which has been negative this year, largely because energy prices are below 2008 levels.
Advocates say older people still face higher prices because they spend a disproportionate amount of their income on health care, where costs rise faster than inflation. Many also have suffered from declining home values and shrinking stock portfolios just as they are relying on those assets for income.
"For many elderly, they don't feel that inflation is low because their expenses are still going up," said David Certner, legislative policy director for AARP. "Anyone who has savings and investments has seen some serious losses."
About 50 million retired and disabled Americans receive Social Security benefits. The average monthly benefit for retirees is $1,153 this year. All beneficiaries received a 5.8 percent increase in January, the largest since 1982.
More than 32 million people are in the Medicare prescription drug program. Average monthly premiums are set to go from $28 this year to $30 next year, though they vary by plan. About 6 million people in the program have premiums deducted from their monthly Social Security payments, according to the Social Security Administration.
Millions of people with Medicare Part B coverage for doctors' visits also have their premiums deducted from Social Security payments. Part B premiums are expected to rise as well. But under the law, the increase cannot be larger than the increase in Social Security benefits for most recipients.
There is no such hold-harmless provision for drug premiums.
Kennelly's group wants Congress to increase Social Security benefits next year, even though the formula doesn't call for it. She would like to see either a 1 percent increase in monthly payments or a one-time payment of $150.
The cost of a one-time payment, a little less than $8 billion, could be covered by increasing the amount of income subjected to Social Security taxes, Kennelly said. Workers only pay Social Security taxes on the first $106,800 of income, a limit that rises each year with the average national wage.
But the limit only increases if monthly benefits increase.
Critics argue that Social Security recipients shouldn't get an increase when inflation is negative. They note that recipients got a big increase in January — after energy prices had started to fall. They also note that Social Security recipients received one-time $250 payments in the spring as part of the government's economic stimulus package.
Consumer prices are down from 2008 levels, giving Social Security recipients more purchasing power, even if their benefits stay the same, said Andrew G. Biggs, a resident scholar at the American Enterprise Institute, a Washington think tank.
"Seniors may perceive that they are being hurt because there is no COLA, but they are in fact not getting hurt," Biggs said. "Congress has to be able to tell people they are not getting everything they want."
Social Security is also facing long-term financial problems. The retirement program is projected to start paying out more money than it receives in 2016. Without changes, the retirement fund will be depleted in 2037, according to the Social Security trustees' annual report this year.
President Barack Obama has said he would like tackle Social Security next year, after Congress finishes work on health care, climate change and new financial regulations.
Lawmakers are preoccupied by health care, making it difficult to address other tough issues. Advocates for older people hope their efforts will get a boost in October, when the Social Security Administration officially announces that there will not be an increase in benefits next year.
"I think a lot of seniors do not know what's coming down the pike, and I believe that when they hear that, they're going to be upset," said Sen. Bernie Sanders, an independent from Vermont who is working on a proposal for one-time payments for Social Security recipients.
"It is my view that seniors are going to need help this year, and it would not be acceptable for Congress to simply turn its back," he said.
*******************************************************************************************************************************************************
Great we come right behind all of this ......" President Barack Obama has said he would like tackle Social Security next year, after Congress finishes work on health care, climate change and new financial regulations.
And who made and paid for all of this in the last 50 years..........The ones that held this nation together, Never fear our beloved President is on another 10 day Vacation since he had to work for one day. :roll:
********************************************************************************************************************************************************
DO NOT PROCEED ANY FURTHER IF YOU LIKE THIS ADMINISTRATION AND WHAT THEY ARE TRYING TO DO. Since it has nothing to do with the forum and why we are here.
/
/
/
/
/
/
/
/
/
/
/
/
/
/
/
/
/
/
/
/
/
/
This guy beat me to it ... I wanted to put one of these bumper stickers up for sale. As normal I am a day late and a dollar short.
Go to .... http://www.zazzle.com/joker+obama+gifts for a wide assortment of the Obama Joker items.
Not pushing his web site or sales of the items , just saying what I am thinking about to express my dissatisfaction.
If you did not read the warning ......This is not an expression or in any way associated with this forum , it is my own person thoughts......Just remember you will be older each day and be a Geezer later on.
Am I mad , you take a guess , the property value has gone down on this house , even with the improvements we have done , the property taxes have gone up , way up. Taxes on just about everything else has gone up and the quality has gone down. The utilities increase every time you turn around and the service decreases. He&& everything increases except for the stuff I have worked for all my life to have and counted on in the so called Golden Years.
Emergence services , Fire and medical , if the respond there is a sir charge for that response , the taxes we pay are suppose to cover that but they don't , I'm waiting and the next thing will be the cop at the door asking if you called and if you did to insert your charge card in the scanning unit so you can be charged for the call and them responding.
Vehicle registration is going to almost doubled along with the drivers license fees in November.
No idea about where you live but it is going to he!! in a hand basket down here while the politicians give them selves some nice raises.
The stuff in Washington sure flowed down hill real quick. Our local elected crooks ( politicians ) sure picked up on the trend in a hurry. :lol:
We are in a very bad situation. 