Increased payments to SSI recipients will begin on December 29. For the elderly, it guarantees that their foundation of retirement income will remain strong for as long as they live. This year's increase in the CPI-W was 3.5 percent. This figure reflects the revision to the CPI released by the Bureau of Labor Statistics on September 28. Automatic COLAs became effective in 1975.
Wages continue to grow faster than inflation.
This is good news for American workers. About 10.9 million workers are affected by the higher wage base in 2001. As of January 2000, the Retirement Earnings Test has been eliminated for individuals age 65-69. It remains in effect for those ages 62 through 64. A modified test applies for the year an individual reaches age 65.