With the government attempting to rescue the nation from falling over the fiscal cliff, legislators have begun to consider making changes to the way inflation of Social Security payments is measured. An article from CBS-MoneyWatch took an in-depth look at the changes that are being considered and how each would affect the millions of recipients of Social Security benefits.
President Barack Obama recently announced that he would be advocating for what is known as a “chained” Consumer Price Index (CPI) for figuring annual Cost-Of-Living Adjustments (COLA) for recipients of Social Security, Social Security Disability, and Supplemental Security Income. Currently, the nation is on a system of measuring COLA inflation known as a CPI-W. The system works by looking at and measuring inflation on a certain group of products that represent average purchases for wage owners, such as costs of food, hygiene products, fuel, and utilities. What a “Chained CPI” would do is essentially allow the government to alter the items that are examined for inflation if, in fact, prices do rise.
While the change would cut government spending, most experts believe the “chained CPI” would only harm those receiving Social Security benefits.
The Social Security Disability Lawyers with Newlin Disability recognize how devastating a change like this could be to Social Security recipients and may be able to help if you are preparing to file a claim for Social Security benefits or have a claim that has been denied in the past.