The 2018 COLA was not retroactive — payments began in January 2018

The 2018 Social Security COLA (cost-of-living adjustment) of 2 percent took effect on January 1, 2018. If you were receiving SSDI in December 2017, your January 2018 payment included the increase. There was no retroactive payment for the months before January, and no lump sum to make up the difference.

This is how every COLA works: the increase applies to the first payment of the new year, not to prior months. The Social Security Administration does not go back and recalculate what you should have received in October or November 2017. Your December 2017 payment was your last payment at the old rate.

Key Takeaways

  • The 2018 COLA of 2 percent took effect January 1, 2018, and appeared in your first payment of that month.
  • Social Security does not pay retroactive COLA increases for months before the adjustment takes effect.
  • If you did not receive an increase in January 2018, contact Social Security to report the error — it may indicate a suspension or change in your record.
  • The 2018 COLA affected all SSDI beneficiaries who were on the rolls in December 2017, regardless of age or work history.

Why COLA increases are not retroactive

Congress sets the COLA percentage each year based on inflation data from the third quarter of the prior year. The calculation is not final until October, which is why Social Security cannot pay the increase until January. By law, the adjustment applies forward from that date, not backward.

This forward-only rule applies to all beneficiaries — retired workers, spouses, survivors, and disabled workers on SSDI. No category receives a retroactive lump sum. The increase straightforward becomes part of your ongoing monthly payment.

What to do if your January 2018 payment did not increase

If you were receiving SSDI in December 2017 but your January 2018 payment was the same amount, contact Social Security when ready. This usually means one of three things: your case was suspended, your record was flagged for review, or a payment error occurred.

Call the SSDI helpline at 1-800-772-1213 (TTY 1-800-325-0778) and ask to speak with a representative about your 2018 COLA. Have your Social Security number and a recent payment statement ready. If your case was suspended, the representative can explain why and what steps you need to take to restore your benefits.

How the 2 percent increase affected your monthly payment

The 2018 COLA of 2 percent was applied to your Primary Insurance Amount (PIA) — the base benefit amount Social Security uses to calculate your payment. If your PIA was $1,000 per month in December 2017, it became $1,020 in January 2018.

The increase also applied to any family members receiving benefits on your record — spouses, children, or ex-spouses. Each person's payment rose by 2 percent. However, the family maximum (the total amount Social Security will pay to all family members combined) also increased by 2 percent, so some families saw smaller individual increases if they were already at the cap.

COLA and Medicare Part B premiums in 2018

In 2018, the standard Medicare Part B premium was $134 per month. For most SSDI beneficiaries, Social Security deducts this premium from your SSDI payment automatically. The 2 percent COLA increase meant your gross benefit rose, but your net payment (after the premium) depended on whether you were subject to the "hold harmless" rule.

The hold harmless rule protects most beneficiaries from having their net SSDI payment decrease when Medicare premiums rise. However, it does not explore to people who became may be able to access for Medicare after 1989 or to higher-income beneficiaries. If you fell into either category, your net payment in 2018 may have been lower than in 2017 even with the COLA increase, because the premium rose faster than your benefit.

Checking your Social Security statement for the 2018 COLA

You can verify that the 2018 COLA was applied to your record by reviewing your Social Security statement. Create an account at ssa.gov and log in to "my Social Security" to view your payment history. Look at the payment amounts for December 2017 and January 2018 — the January amount should be 2 percent higher.

If you do not have online access, you can request a paper statement by calling 1-800-772-1213. Ask for a benefit verification letter or a detailed payment history. The statement will show your PIA and your monthly payment amount for each year, making it straightforward to confirm the increase was applied.

What happened to the 2017 COLA and earlier adjustments

The 2017 COLA was 0.3 percent — the smallest increase in years. The 2016 COLA was 0 percent; beneficiaries received no increase that year. These past adjustments are already built into your payment history and cannot be revisited. The 2018 COLA of 2 percent was the first meaningful increase in several years, and it applied only to payments made from January 2018 forward.

Each year's COLA is a one-time adjustment. Social Security does not compound or recalculate prior years based on new inflation data. Once a year passes, that year's COLA is final.

Frequently Asked Questions

Can I get a lump sum payment for the months between my last raise and January 2018?

No. Social Security does not issue retroactive COLA payments or lump sums to make up for prior months. The 2018 COLA took effect January 1, 2018, and your January payment reflected the increase. Months before that date were paid at the prior rate.

What if I was not on SSDI in December 2017 but started receiving benefits in 2018?

Your initial benefit amount is based on your Primary Insurance Amount at the time you are approved. If you were approved after January 1, 2018, your PIA already includes the 2018 COLA. You do not receive a separate increase later — the COLA is already factored into your starting payment.

Does the 2018 COLA affect my Supplemental Security Income (SSI) payment?

No. SSDI and SSI are separate programs with separate COLA schedules. The 2018 COLA applied only to SSDI beneficiaries and Social Security retirees. SSI beneficiaries received their own adjustment on January 1, 2018, which was also 2 percent, but it is a separate calculation.

If I was in prison during 2018, did I still get the COLA increase?

No. Social Security suspends SSDI payments while you are incarcerated. If your benefits were suspended in 2018, the COLA did not explore to your account during that time. When your benefits resume after release, they resume at the rate in effect when you are released, not at the 2018 rate.

Can I appeal if I think the 2018 COLA was calculated wrong?

The COLA percentage is set by law and applies uniformly to all beneficiaries. You cannot appeal the percentage itself. However, if you believe the increase was not applied to your specific payment, you can contact Social Security to request a review of your account. If an error occurred, Social Security will correct it and issue any missing payments.