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Senator Has a Plan to Make Up for the Loss of 2010 COLA

By now, many recipients of Social Security disability payments are aware of the fact that the Social Security Administration will not be performing a cost-of-living adjustment in 2010. The adjustment, called COLA, has existed for over thirty years. The point of it is to helps beneficiaries of Social Security, including those who receive disability payments, cope with high inflation that many years bring.

However, according to government officials, the fact that there is no high inflation at this time should make it easier to deal with the absence of COLA. They point out that the increase is typically low anyway and can be made up by cutting costs throughout the year. In fact, the highest COLA since the early 1980s occurred this year, at nearly 6%. The increase typically hovers around 2%.

Many Social Security recipients do not intend to take the unfavorable change lying down. In fact, some officials are also fighting the issue. According to The Burlington Free Press, Senator Bernie Sanders is encouraging the Social Security Administration to offer a one-time $250 check to those who receive benefits. He and other supporters claim that it could help make up for the loss of COLA in 2010.

Although most people who depend on Social Security to live are protected by the impending Medicare prescription drug cost increases set for next year, about one quarter are not. This, combined with the absence of COLA, could create an extreme hardship for some recipients. Such people might not be saved from poverty with a $250 check, but it is better than nothing, according to supporters of the idea.

To help pay for the check, the proposed bill pushes for an increase in Social Security payroll taxes for those in the $250,000 to $359,000 bracket. If passed, this bill could help relieve some of the worry for Social Security recipients in 2010.

Fort Lauderdale, Florida disability lawyers, LaVan & Neidenberg, represent over 5000 disability claimants. Our disability attorneys have experience with cross examining agency-appointed medical and vocational experts and take time when speaking with you about your disability claim. Call us today at 1-888-234-5758 for a FREE legal consultation. There is NO OBLIGATION to hire our firm and there are NO FEES unless one of our trained disability lawyers wins your case.