Social Security Administration Unlikely to Raise Benefits in 2010-12

The head of the Congressional Budget Office projects that there will be no cost-of-living adjustment (COLA) for Social Security beneficiaries in the next three years under current law. If this occurs, it will be the first time since 1975 that beneficiaries have not received an automatic increase in benefits. The law determines Social Security COLAs based on the consumer price index. Prices fell at the end of 2008 and inflation is expected to remain low for the next few years meaning that an automatic increase will not occur.