Noteboom The Law Firm

Learn How COLA is Calculated

Most people who receive Social Security disability benefits are now aware that there will be no cost-of-living adjustment, or COLA, in 2010. This is because those in charge have decided that it is not needed due to a lack of the inflation that typically occurs every year. Therefore, they do not believe COLA is necessary.

Clearly, most people who are barely getting by with their disability income beg to differ. They might wonder how those in charge decided that the adjustment is unnecessary.

According to Tennessean.com, the Social Security Act is responsible for developing a way to configure the COLA each year. In general, the disability wage is adjusted depending on the increase in percentage of the consumer price index for Urban Wage Earners and Clerical Workers. The increase is studied, starting by comparing the previous year's third quarter to that of the next year. It is simple to discover if there should be a COLA this way, since if there is no increase, there is no adjustment for the year.

For years when there is a COLA, your primary insurance amount, or PIA, is increased by the amount of adjustment that everyone will receive. Any monthly Medicare coverage that you pay for monthly will be subtracted, and then you will get your check.

While the lack of COLA is worrisome and frustrating to many, it is comforting for some to know that the increase in benefits is not decided randomly. It is based on a somewhat complex formula that does not lie. However, this fact does not help if you cannot pay for housing, food, or necessary prescriptions.

Instead, one can only hope that substitutions, such as a proposed one-time check, are approved at some point to make up for the lack of COLA. If you have questions about the amount you will receive in the New Year, contact an experienced lawyer.

If you or your loved one are suffering from a severe physical or mental disability, you should contact a Social Security Disability lawyer immediately to learn about your rights and determine eligibility. The process of securing Social Security Disability Insurance benefits and/or Supplemental Security Income (SSI) can be difficult and overwhelming. Don't go it alone! The disability lawyers at LaVan & Neidenberg, located in Ft. Lauderdale, FL understand the inner workings of the Social Security Administration and will help you navigate the system. Call us today for a FREE legal consultation - 1-888-234-5758.