Social Security Recipients to See Setbacks

OKLAHOMA CITY -- A huge setback is in store for older Americans who depend on their monthly Social Security benefits. That's because next year they will not be seeing a raise.

The economy may have lead to the feds scrapping the raise.

Social Security recipients have gotten an annual cost of living allowance or COLA raise for the past 33 years and now it's no longer a sure thing.

Frank Vascellaro retired in June and can now spend time on his favorite pastimes, photography, gardening, and of course his grandchildren.

"I'm able to do things around the house, go to the museums around the Oklahoma City and Tulsa areas and just do things, visit with friends and it's been a great opportunity and I'm so glad I did it," Vascellaro said.

He also just got his first Social Security check this month only to find out he won't be getting a cost of living allowance next year.

"It is disheartening because you look at some of the other government programs and I don't want to bring this up, but the bailouts and things like that, and then the people that need it are not going to be able to use it," Vascellaro said.

The Social Security cost of living raises are tied to inflation. Inflation has been flat because energy prices are down.

"The lowering of gasoline has been the main factor in producing deflation and resulting in no consumer price index increase which would cause the raise of Social Security," Larry Jones with the Social Security Administration said.

Its possible people who get Medicare could actually see a decrease in their checks if their premiums increase and they don't get the COLA raise; the premiums still come out of their checks.

"That's going to be some of the issues that our seniors here in Oklahoma, and those that are younger that are on Social Security are going to have to deal with," Jones said.

Vascellaro says he's fortunate to have other income to fall back on, but he's still has to watch every penny.

"We may not be able to go on the same amount of trips or we're going to have to look at our TV expenses and our entertainment dollars are going to have to change," Vascellaro said.

In January, Social Security recipients got a 5.8 percent increase; the largest since 1982.