Social Security recipients could very well see an increase in the “Monthly Benefit” amount under a new proposal that would change how the yearly Cost-of-Living-Adjustment, or COLA, is calculated.

Representative Ruben Gallego, of Arizona, has introduced the “Boosting Benefits and COLAs for Seniors Act” in the U.S. House.  That bill requires the use of the Consumer Price Index for Americans 62 years and older, to set the yearly COLA change – currently, those benefits are adjusted using the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W.

COLA was first instituted back in 1975 and it is determined by data from the third quarter – July, August and September – for each year – and this year’s COLA was 3.2%, and that’s less than half of the historic 8.2% boost recipients received the year before.

The 3.2% rate represented an increase of $50 per month, for the average recipient.  Gallego’s bill, is endorsed by the American Federation of State, County and Municipal Employees and the Alliance for Retired Americans and the AFL-CIO.

(www.AL.COM)