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Cost-OfLiving Adjustment
<br />Jelal Security and, `-,,Lii.-.T.1(..aritentall Sek.anity
<br />,cotrie qSSIJ 1",,,,,,,alefirs arc alLirtist(e'd
<br />reflect thein uan,y, in cost of
<br />Iivn11as measini rtOoal by the Con l 1."11 er Price
<br />Index for 1 J1 h.l 1 Wage Earners and
<br />'Workers prepa,red by tlic Bureau of
<br />1..abor Statistics 1111,,Sl. "Tile purpose' (...4
<br />cost-of-livirig aditistincint is to ensure
<br />that the purchasing .r.)ower ()If aSecurity
<br />and SSI 1)(..a.tetits is not eroded by int latiori.
<br />For purpos(;'s of detail:ining 'the (,..7.11.)LA, the
<br />;tverage CPLAV for th.(,.!, third calendar quarter.
<br />of the last year a (,....:(,)LA was („leterrnined
<br />conapared to t 11.n2o a \Trap:. CPI-W for tile
<br />third. ealen.dar quarter of tile current year,
<br />The resulting 1."),er.,(..:.e1ltage increase, it lfl
<br />representstli pero...:ntag,c that will be used to
<br />increase Social Security benefits beginning
<br />h)r 1.)tecnillei of the current. year. SST ben.efits
<br />increase hy the s.anic perconta,(e die follo‘ving
<br />month Jianamry), if the. increise in the C.1'.1-1A1
<br />It lL1t (:urle-t.,cauli, or one IILk F1t » 1 pc'reenil,
<br />there wIll be a FioNvever, if tlic
<br />increases byless than 0.0h percent, („K it the.
<br />decreases„ there, will not he a (..:01.nA,
<br />rrIPTIVr
<br />igAtki;41, N ‘11:46,IN
<br />nr(s (,,,nacted thcCOI,A pr,,vision
<br />pan ot t.he Social Security Amendments.
<br />Prior to, enactment, increases in Social Se,curity
<br />lido had to In nacted Hy (.:origress tin
<br />an ad hoc basis. At. that tiirle, nil -lotion was
<br />relatively high, so the provirshn enacted in
<br />1972, provided fonr an automat k...!
<br />if the incr(ist,.'; in the. (-TINY w.,is at It.,',ast
<br />3, percent, tillcd "onv2.o - be. tcci.it trigge.r."
<br />13y the i11id-1980s,, as inflation bc..gin to
<br />WJ1C, 11 l(1l11( Vol ppoovi rCirtn that because of the
<br />percerit trie.r„ it could be 1,7,ossilTde that.
<br />therc -would not I.)e an annual C,"..0l,„A. In 1986,,
<br />C..ong,ress c.nacu..!d. legislation to eliminate t 11,C
<br />-pt.irccra trigger,
<br />MMite
<br />HICSINIgt,
<br />"I-11cre 1i 1 number of othe.r aut.c.yrnat
<br />increases in t 1i i n 11 S cc u rit y progra.11
<br />ot these increa.st.,,,siio bad upon increases
<br />11 the...nt..i.o.n,.,1.1';:lvc.r.igc but are
<br />t rigge red onlyif tlorc i.s a t(..11- Social
<br />Security bcnefits. hhese axe:
<br />• TIThe contribilt.ion and beaelit.
<br />thc Ica") oritho . arnount of 00(14, illdself-
<br />s.0.1,-)tect to
<br />Security payroll tax.; and
<br />• R,etireirkalt ea.rni..ngs testex.e.nat-it
<br />e,aps on tile. a Flin t fv. cO. r 11 11t 1.1 t.
<br />1.14,..11.efici01y rt11:11t1ori in
<br />.)111' 114
<br />1::(11.efitS
<br />.4 46.444,
<br />Unlike ih 4,11S(-2:curity tire
<br />plays in part. 10 th (yrrifiqttation cit: the
<br />Part l prenliurn,
<br />11 rin LI nolli'Unvi,iVe'nO koo a CI) y 1 11 1t 1.1C Conn Sonjnonv).ov,. non()
<br />that the Pa 11 h p0111 11111 1no; no; co t iv (vac 111 11 11 t1(1
<br />.',urproxitTmitly 1..1c0,e11t tl-kt protcctckt cost
<br />of the ['art H1,11"rarn. Arty sut:',111.)rear1itir11
<br />t..,harige is cifecti \re in laritiar"y,
<br />hlforniation iklui Medicare dlangcS toi
<br />2., 1)13w 1 111,(,..,‘. ;Iva t 1a b.l.,:„..! at wwmtdicaiegov
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<br />1(1 1111111 information and to f11111
<br />public;,itriiitisp visit out ?it
<br />ii,vvvvipcsocibrisecurii.y.gov or c;',...11.1. rec.,
<br />J-OO-772-12J 3 t or iht (ie, ;if or liiF10f licaring,
<br />our '11"41 nurnbch, 1-800-:325-07781,
<br />calls (....onfricklitii,Q1y. can ans‘ver
<br />questi iris from 7 ail.), until 7 1.11.111.,,,
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<br />hours a day.
<br />\\-1(.' alsowint t(..), make ,Rtire. y(.yu
<br />.,31'curate..01141 ,court.o)ivs, scrvicc, That is
<br />11 ;rye1 second, S.,..)ciA I Scan.
<br />sorne 1el(111.1 line calk
<br />SO1i,Il tCUIlIAdm"6iismr.ation
<br />A °11 4 N „
<br />(t,.....tober 20'12
<br />www.socialsecurity.gc#v
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