WASHINGTON (AP) - The Social Security Administration says there will be no cost of living increase next year for more than 50 million Social Security recipients, the first year without a raise since automatic adjustments were adopted in 1975.
Blame falling consumer prices. By law, the cost of living adjustments are pegged to inflation, which is negative this year because of lower energy costs. Social Security payments, however, cannot go down.
Thursday's announcement comes a day after President Barack Obama called for $250 payments for seniors, veterans, retired railroad workers and people with disabilities.
The payments would match the ones issued to seniors earlier this year as part of the government's economic recovery package.