Last week, Rep. Carolyn McCarthy (D-NY) introduced legislation that, if passed, ensures retirees will receive a cost-of-living-adjustment (COLA) in 2010.

Under the current guidelines, social security recipients are not scheduled to

receive any COLA next year.  The Social Security COLA Fix for 2010 Act

(H.R. 3536) will help seniors offset the rising costs that they face by

providing them with a one-time $150 payment in lieu of the Social Security COLA.

 
Social Security COLAs are based on inflation, and since inflation

did not increase in 2009, Social Security payments are expected to remain at the

same levels in 2010 as they have been in 2009.

While inflation may not have gone up since last year, costs for seniors,

especially their healthcare costs, are increasing.   According to

McCarthy's office, Medicare Part B costs, for example, have gone up by an

average of 7.8 percent over the last five years and are projected to rise in

2010 by as much as 9 percent.  Seniors also largely live off investment

income, many of which have seen staggering hits as a result of the economic

downturn.
 
The lack of a Social Security COLA increase in 2010

would affect over 50 million individuals who receive Social Security checks,

says McCormick's office. The 2010 Social Security projections represent the

first year without a COLA increase since the automatic Social Security COLA

adjustments began in 1975.
 
"I have been hearing from many seniors

in my district who are concerned about not getting a COLA in 2010. Seniors rely

on these payments and with the increasing costs of healthcare coupled with hits

to their investments, America's seniors are being shortchanged. This bill will

help provide some relief to millions of Americans," said Rep. McCarthy.

While most federal retirees and their survivors receive would benefit from

the bill -- if it passes -- about 200,000 federal annuitants, covered by CSRS

and other systems, who are not eligible to receive Social Security benefits

would not, according to the National Archive and Retired Federal Employees

Asccociation (NARFE).