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Did you notice that the Social Security COLAs look like they're increasing faster than inflation? Don’t be misled! It may be because the measuring rules have changed in mid-stream. Here’s what we found: 

From Michael Hodges at http://home.att.net/~mwhodges/inflation.htm:

“Watch it - CPI measuring criteria has changed:” … “1995-1999 reflects a new measurement method now in process” … “(the new changes are per Business Week, 10/4/97, pg. 30: 'Since the start of 1995, Labor Dept. statisticians have 'quietly' modified their treatment of rents, hospital prices, drugs, and altered other sampling methods. This has lowered the published rate of consumer inflation”… “Therefore, part of the apparent lower inflation rate numbers reporting today, compared to the past, is from changing the yardstick of measurement.' That's like moving in the baseball field fence and then declaring 'now our home-run performance will be better.' 

Why did they do this? Answer: One could say if you don't like what you are paying then change the way you measure. In this light, the Clinton administration and some congressional leaders decided to change how inflation is measured in order to reduce the annual cost-of-living adjustment pay-outs to recipients of social security and other programs, without saying that was their objective.”

We're not throwing stones at any Administration...BUT we wanted you to know:

1. Many of the same people who approved this slight of hand are still in office.
2. This was an effective way to reduce your future payments without you ever knowing it.
3. This change will not go away. The reduction has become part of the base calculations for ALL FUTURE BENEFITS.

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