• 29
  • June
    2011

Many Social Security Disability benefit recipients already fear that the Social Security Trust will fully deplete within the next 25 years. But now another, more immediate, threat looms: changes to cost-of-living adjustments. Lawmakers are looking for ways to balance the massive federal deficit and some see the consumer price index (CPI) as an appropriate way to do it. Unfortunately, changes to the CPI would readjust the cost-of-living standards, therefore reducing government payouts of Social Security benefits in millions of cases.

It is one way legislators can technically cut Social Security Disability benefits without facing an outright public assault for doing so. Formally proposing Social Security cuts would be an unpopular move with many disabled Americans, senior citizens and aging baby-boomers.

The Adjustments to the Consumer Price Index

The CPI controls cost-of-living adjustments by calculating the impact inflation has upon the cost of consumer goods. The change that some politicians support would modify the calculation of the CPI, effectively lowering cost-of-living adjustments. The cost-of-living modification would initially seem minor to most Social Security Disability (SSD) and Supplemental Security Income (SSI) recipients, but its effect would grow each year.

The debt-reduction packages are just proposals at this point, but they are being taken seriously. It is important for the public to know the true impact of changes to the CPI: that they will lower the SSD and SSI benefit payments to millions of Americans. Contact your representative to let him or her know your opinion on changes to the consumer price index and cost-of-living adjustments.

If you need assistance applying, expediting or appealing your SSD claim or determination, contact an experienced disability claim advocate.

Source: usnews.com. "Debt Ceiling Could Mean Social Security Cuts" June 28, 2011.