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No Social Security COLA for 2011

Monthly Social Security and Supplemental Security Income (SSI) benefits for more than 58 million Americans will not increase automatically in 2011, the Social Security Administration has announced.

The Social Security Act provides for an automatic increase in Social Security and SSI benefits if there is an increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers from the third quarter of the last year in which a cost-of-living adjustment (COLA) was deter-mined to the third quarter of the current year. As determined by the Bureau of Labor Statistics, there was no increase in the price index from the third quarter of 2008, the last year a COLA was determined, to the third quarter of 2010. Therefore, under existing law, there can be no COLA in 2011.

Other changes that normally would take effect based on changes in the national average wage index also will not take effect in January 2011. Because there will be no COLA, the statute also prohibits a change in the maximum amount of earnings subject to the Social Security tax as well as the retirement earnings test exempt amounts. These amounts will remain unchanged in 2011.

Complete information about Medicare changes for 2011 is available at www.medicare.gov. Click on "Medicare Premiums and Coinsurance Rates for 2011" under the site's "What's New" section for up-to-date information regarding rates in the new year. This information fully explains any applicable rate increases.

For additional information about the 2011 COLA, visit www.socialsecurity.gov/cola or call 800-772-1213.

For additional information about changes in the national average wage index, visit www.socialsecurity.gov/OACT/COLA/AWI.html.