2010 Cost-of-Living Adjustment How the 2010 COLA Was Figured So, How does this COLA affect MY check? What is a COLA? Legislation enacted in 1973 provides for cost-of-living adjustments, or COLAs. With COLAs, Social Security and Supplemental Security Income (SSI) benefits keep pace with inflation. No COLA There will be no increase in Social Security benefits payable in January 2010, nor will there be an increase in SSI payments. How is a COLA calculated? The Social Security Act specifies a formula for determining each COLA. In general, a COLA is equal to the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of one year to the third quarter of the next. If there is no increase, there is no COLA. COLA Computation For the December 2009 COLA, we measure the increase (if any) in the average CPI-W from the third calendar quarter of 2008 to the third quarter of 2009. These averages are 215.495 and 211.001 for the third calendar quarters of 2008 and 2009, respectively, and are derived from monthly CPI-Ws developed by the Bureau of Labor Statistics.   Month CPI-W for— 2008 2009 July 216.304 210.526 August 215.247 211.156 September 214.935 211.322 Total 646.486 633.004 Average (rounded    to the nearest 0.001) 215.495 211.001   Because there is no increase in the CPI-W from the third quarter of 2008 through the third quarter of 2009, there is no COLA.   Go to main COLA information page. See this page to read more information on the final CPI number that came out on October 15, 2009, which will determine the Cost of Living Adjustment for 2010. and: Does the CPI reflect what Seniors must actually spend? and: WHAT IS CPI, HOW IS IT FIGURED, AND WHY THE HECK DO I CARE? also read: Hall calls for fair Social Security Increases Main Social Security Tips Page Click to see the 6-page list, if you have the stomach! (.pdf file, requires free Acrobat Reader)