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BY AUSTIN FAX

ANCHOR CHRISTINA HARTMAN


Pepsi. Sprite. Dr. Pepper. Everyone has their favorite COLA. But starting in 2012, seniors might find a new COLA to be more than just ‘refreshing.’


WTVT’s Tom Curran gives us the details on an increase in Social Security that will hand seniors a little extra cash.


“It’s called COLA-- which stands for a Cost of Living Adjustment. Over the past two years the federal government has said inflation wasn’t enough to increase payments. But that’s changing starting in January. Tens of millions of Americans will see a 3.6 percent increase which is about 40 bucks a month.”



Forty bucks a month doesn’t sound like a big amount, but David Asher tells CBS News the increase could mean a lot to seniors who have been hit hardest by the economic recession.
 

“It could be the difference between food and rent. Or between going to the doctor and cutting back on their prescription drugs or getting prescription drugs. It could be a matter of life and death for some people.”



All good news for seniors, right? CNN’s Alison Kosik says hold on-- there might be a catch.  
 

“Many people say when you get a raise, it’s already spent. Well, this could be the case because Medicare premiums are expected to go up in the double digits. We’re not sure, but there is expected to be an announcement coming out next month. But yes, part of this Cost of Living Adjustment in Social Security benefits may be offset because of Medicare premiums going up.”


The law does not allow for a DECREASE in the cost of living adjustment. But a blogger for U.S. News and World Report has a warning for seniors. Enjoy the increase now because it might not always be there.
 

“While Social Security benefits are still adjusted for inflation based on the consumer price index (CPI), the methodology for calculating the CPI changed dramatically in 1999, thereby reducing increases in the CPI. While one would think that no politician would risk tampering with Social Security benefits, the whole issue of reducing entitlements is a popular one today.”