Millions of Social Security recipients, disabled veterans, and federal retirees nationwide can expect no increase in benefits next year.
This will affect approximately one-fifth of the nation’s population and, according to a December 2013 report from the U.S. Social Security Administration, 12,689 Alaskans.
Low gas prices have dragged-down the government’s measure of inflation on the annual cost-of-living-adjustment which determines Social Security benefit increases.
The COLA is calculated annually by comparing consumer prices in July, August, and September to those same three months from the previous year.
In a report released today, the U.S. Department of Labor said its Consumer Price Index fell 0.2 percent last month after slipping 0.1 percent in August.
In September gasoline prices fell 9.0 percent, the biggest drop since January, after a 4.1 percent decline in August.
The lack of a COLA could also mean higher health care costs for older Social Security recipients because any rise in Medicare premiums will be burdened by around 30% of beneficiaries.
2010 and 2011 are the only other years in Social Security history that there has not been an increase.