The Social Security Act includes provisions for cost-of-living increases to ensure that Social Security benefits keep up with inflation.
Section 404.270 outlines the rules for cost-of-living increases for primary insurance amounts.
Under § 404.270, your primary insurance amount may be automatically increased each December to account for rises in the cost of living. These automatic increases also apply to other benefit amounts, as described in § 404.271.
Cost-of-living increases are determined by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures the changes in prices for goods and services purchased by these groups. If the CPI-W has increased from the previous year, then Social Security benefits will be adjusted accordingly.
It’s important to note that cost-of-living increases are not guaranteed, and there have been years in which there were no increases due to a lack of inflation. Additionally, the percentage increase can vary from year to year, depending on the CPI-W.
If you receive Social Security benefits, you should receive an annual notice from the Social Security Administration letting you know about any cost-of-living increases that apply to your benefits. You can also check the SSA website for updates.
In conclusion, § 404.270 of the Social Security Act provides important rules for cost-of-living increases for primary insurance amounts. These increases help ensure that Social Security benefits keep up with inflation and provide beneficiaries with necessary financial support. It’s important to stay informed about cost-of-living increases to understand how they may impact your benefits.
https://www.ssa.gov/OP_Home/cfr20/404/404-0270.htm
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