No COLA Increase for Social Security Benefits in 2010

For the first time since cost-of-living increases to Social Security benefits were introduced in 1975, there will be no increase in 2010 for more than 57 million Social Security recipients. The cost-of-living index declined, so there is no automatic increase in benefits.

There will also be no increase in the earnings limit for those under the full retirement age; the limit will remain $14,160. For those who have earnings over the limit, benefits are reduced by $1 for each $2 earned over $14,160. The earnings limit for people turning 66 in 2010 will remain at $37,680. Benefits will be reduced by $1 for each $3 earned over $37,680 until the month the worker turns age 66.

Some relief? President Obama has called for a second stimulus payment of $250 to Social Security recipients in 2010. Whether Congress will enact this measure remains to be seen.