No COLA Increases in Social Security Benefits

No COLA Increases in Social Security Benefits

Social SecurityThe trustees of Medicare and Social Security released their annual report on the state of the two largest entitlements, and the good news is that they won’t be going insolvent until 2029.

That’s a 13-year extension on the perilously close date of 2017 that the trustees had previously provided as an estimate for when they expected to be insolvent.

Treasury Secretary and Managing Trustee Jacob Lew said in a press release that the Affordable Care Act has helped reduce the rate of health care price increases to their lowest rate in 50 years.

But things will again get worse pretty soon as the system tries to accommodate retiring boomers. There are now 10,000 boomers turning 65 every day, and, Medicare will enrollment will rise to 64 million enrollees five years from now. That’s roughly 10 million more than current levels, since Medicare provided health insurance coverage last year to 53.8 million people.

AARP CEO Jo Ann Jenkins issued a statement noting that “AARP believes we can reduce costs and find significant savings in Medicare using responsible solutions rather than applying harmful cuts to beneficiaries in an attempt to save money.”

 

No Social Security COLA Increases

The report also has more news for federal employees who are eligible to collect Social Security benefits and a Supplement as CSRS or FERS retirees who retired early. The Trustees announced that approximately 70 percent of beneficiaries are expected not to see a premium increase in 2016 because there will likely be no cost-of-living increases in Social Security benefits.

Part B premiums will be finalized later this year, but only 30 percent will pay a higher premium, including individuals who enroll in Part B for the first time next year, and enrolls who do not receive a Social Security benefit.

 

Social Security Articles

Understanding Your Social Security Benefits as a Federal Employee – by Gary Fouts

Sources of Federal Retirement Income

Could Taking Early FERS Retirement Cost You Your SRS Benefit? by June Kirby