Oh, Hot Damn

About 8 million people who receive Supplemental Security Income will also receive the 3.6 percent cost-of-living adjustment, or COLA, meaning the announcement will affect about one in five U.S. residents.

There was no COLA in 2010 or 2011 because inflation was too low. Those were the first two years without a COLA since automatic increases were adopted in 1975. However, Social Security recipients did receive a one-time $250 payment from the economic stimulus package passed in 2009.

No, wait:

"For many of our seniors, the creeping costs of medical care, food and housing have forced them to stretch their limited incomes to the breaking point," said Rep. Xavier Becerra of California, the top Democrat on the House Social Security subcommittee. "And after two years without any cost-of-living increases, our seniors are getting some much-needed relief.

Some of the increase in January will be lost to higher Medicare premiums, which are deducted from Social Security payments. Medicare Part B premiums for 2012 are expected to be announced next week, and the trustees who oversee the program are projecting an increase.

Ironic? Rep Becerra is this reporter's Congressional representative.

More info: Social Security Administration's COLA site: http://www.ssa.gov/cola/

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