An Extra $250 Social Security Stimulus Payment in 2010 for Retirees, Veterans and the Disabled in 2010
President Obama has proposed extending the 2009 economic recovery payment of $250 into 2010 by providing another payment of $250 to retirees,veterans and disabled people already receiving Social Security benefits. This additional payment will potentially be funded via the $787 Billion economic stimulus package and is expected to cost $13 billion in total.
"These payments will provide aid to more than 50 million people in the coming year, relief that will not only make a difference for them, but for our economy as a whole, complementing the tax cuts we've provided working families and small businesses through the Recovery Act," Obama said in a statement.
President Barack Obama is calling on Congress to quickly approve the $250 payments to more than 50 million seniors to make up for no cost of living increase in Social Security next year (according to the SSA which has cited negative inflation this year as the reason).
The new benefit would be $250 – or equivalent to a 2 percent increase in benefits for the average Social Security retiree beneficiary. Under the rules no person could "double dip" and receive a $250 Economic Recovery Payment through more than one program. Nor could they receive both an Economic Recovery Payment and the Making Work Pay tax credit.
The $250 payments would go to those receiving veterans benefits, disability benefits, railroad retirees and public employee retirees who don't receive Social Security. Like the 2009 $250 payment, the additional $250 social security payment will most likely be paid out by the SSA and not count as income for SSI. To date Economic Recovery Payments have been made to 55 million people including seniors, veterans and people with disabilities and totaled $13.7 billion. Most of the checks were mailed out in May 2009.
To receive the 2010 $250 payment, the beneficiary’s address of record must be in a valid US state or territory. Only individuals eligible for Social Security, SSI, Veterans, or Railroad Retirement benefits at any time during the months of November 2009, December 2009, or January 2010 may be eligible for the extra payment. The $250 payment will be delivered in the same way your current Social Security or SSI benefit is sent.
In addition to this legislative proposal, the IRS and the Department of Treasury will take steps this week to prevent reductions in the amounts that workers can contribute to IRAs, 401(k)s, and other aspects of tax-favored retirement systems in 2010 that some feared could result from negative inflation over the past twelve months.
I will continue to update this news item as it moves through Congress and more information is made available, and I encourage you to subscribe (free) via Email or RSS to get the latest news.
Related
~ Key Dates for Stimulus Payments
~ Stimulus Tax Breaks and Traps
~ 5 Personal Finance Tips For Smart Retirement Planning
~ Claiming Social Security Benefits Later Rather Than Earlier
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October 14, 2009 7:14 PM
What's the difference if you raise social security payments or give $250.00. As a senior that's welcome but won't put a dent in expenses. Frankly, I would give it up rather than continuing down this spending venture of our government. What's more freightening is not having my health needs being addressed by my doctor. Use this $250.00 to pay my doctor more. Stop spending Mr. President.
October 14, 2009 7:24 PM
that's an idea far better than throwing taxpayer money into failing companies. however the timing of this proposal is somehow political since Dow is at year high, and the only people who are making a big killing are those who caused this crisis.
To us poor older folks out there, nothing in life is fair of course, have some leftovers.
October 14, 2009 8:07 PM
I got the original payment earlier this year and while I apprecaite any help, $250 is hardly going to help us for more than a month or two. Also, maybe those in Washington think there is no inflation but compare the price of bread and milk to last year and you will see what real inflation is.
October 14, 2009 8:08 PM
whats another $13 billion...we are killing our kids
October 14, 2009 8:09 PM
To the lucky recipient of Obama's $ 250(seniors) put that on savings account ,when the Obama care took effect you will need that money to extend your life for an hour or two because you are too old for them to consider providing you on life extending care or proceedure. So please save that money.
October 15, 2009 6:42 AM
This is something that is not going to help retire,disabled,vets,we need our cost of living everything is so expensive? Everyone should contact there senator and let them know?
October 15, 2009 12:35 PM
I think its a good thing that Obama is doing that and I hope that he continues to create something that helps the seniors and that is very important.
October 18, 2009 3:17 PM
Giving Seniors $250.00 and taking their COLA is NOT enough. We are depending on our increase to live on. We are not young and therefor able to go out andsecure an income. We are on fixed incomes. Our savings and the value of our homes have been eaten into and social security is IMPORTANT!!!!Outrageous decision for Seniors . We worked all our lives for what????
October 18, 2009 3:18 PM
the government employees get cost of living increases constantly so why shouldnt social security? after all it their own money,the $250 is a scam,because they will be charged additional taxes on it which will out weigh the amount that they have recieved. its the same thing as people recieved when he so called "stimulus plan" happened,the extra $15/week is supposed to be a tax cut,but,it isnt the tax tables never changed,,the extra $780 people are recieving is actually untaxed income and everyone will get hit VERY hard at tax time next year
October 19, 2009 11:49 AM
I would just like to see people in washington having the same retirement of social security that we do and see how they like to live on $850.00 a month
October 19, 2009 11:18 PM
I am happy because there is no law that states we should get any money at all. Our President feels we need some extra cash, so take it and don't complaint. I may have not voted for him, but I support any President because that's the way it should be for all Americans.
October 19, 2009 11:19 PM
Thanks for all your comments folks. Great to see such a diverse range of responses. With the lack of a COLA this year, this check is better than nothing. Still has to go through congress (though should get approved) and I'll post updates if I see/read anything.
October 23, 2009 10:55 AM
I appreciate the $250 stimulus but with the way prices are , it won’t go far. I also heard that Obama is eliminating the cost of living increase for 3 years. If he does that we’re up a creek without a paddle. I, for one, am glad we get that cost of living increase. I am disabled as well. My doctor told me that I can’t work until I have back surgery but I don’t know if it’s gonna help anyway. I am 61 yrs old and I doubt that anyone would hire someone my age. So , as you can see, I am between a rock and a hard place. I have 4 ruptured disks in my back and I am in constant pain.
October 23, 2009 10:57 AM
Only those of us who get monthly Social Security or SSI (welfare) payments will receive the $250 handout. We who no longer work and pay SSA taxes and those who never paid SSA taxes thank you who are working and paying SSA taxes so we can get our freebees from the U.S. Givemint. Ain’t it great! Everything in America is free (for us amigos).
October 23, 2009 3:04 PM
How about just giving SSI folks the 3-4% raise? no more, no less. it makes owe-bama look like he is trying to pacify the elderly with token checks, it is less than half of what they would have gotten. the cuts are already starting......
October 23, 2009 3:15 PM
I never received my stimulus check for $250 and here it July 21, 2009. What can I do to get it? I called Social Security and they told me it was because the automatically deposited into the last checking account number they had on file for me. Since I hadn’t received a check from SS in about four weeks, due to a penalty fee imposed on me, I failed to call them and let them know I had changed bank accounts and so it was returned. Since then, I notified them of my new account information and still have not received the stimulus payment. What now???
October 23, 2009 3:38 PM
Giving Seniors $250.00 and taking their COLA is NOT enough. We are depending on our increase to live on. We are not young and therefor able to go out andsecure an income. We are on fixed incomes. Our savings and the value of our homes have been eaten into and social security is IMPORTANT!!!!Outrageous decision for Seniors . We worked all our lives for what????
October 23, 2009 3:39 PM
Geez, Louise! Social Security is low enough. Talk of the decrease of costs is ridiculous. After a couple of gas bills around $300 a month this past winter & many other months so much higher than it used to be, I certainly could use a subsidy. Have a question -- how many have thought about the fact that so many women get their S.S. based on previous income & women's income was so much lower than men's for so many years (still is in many cases,) don't you think there should be some adjustment for that? Never see that mentioned, but I trained men for only a portion of my job that often made 2 to 3 times what I made after that. It never ends, does it. We always seem to be the ones getting the kick in the teeth from our young days to our retirement ones!
October 28, 2009 7:27 PM
The one thing you guys aren't seeing is that there is more then just seniors on SSI, what about the people i.e children receiving survivors benefits, but they don't receive the stimulus payment because they aren't "disabled, elderly, or retired". Some of us depend on the COLA to help with the cost of raising children. We didn't choose for our children or the spouse' to have to bear the burden of losing a parent/spouse and in a single income family it is hard to make ends meet. I think that taking away the COLA and say well we will give out a one time payment is just ABSURD!!
October 30, 2009 1:57 PM
Everyone wants their increase in social security, which would be $8.00 a month. The $250 stimulus translates into $20.83 a month. What is the complaint?
November 12, 2009 12:24 PM
So the federal government continues to fund bonus checks for greedy CEOs, but can't afford a cost of living increase for the poorest and most vulnerable of our country.
Typical.
November 15, 2009 10:03 PM
Face it the rich keep getting richer and the poor keep getting poorer, and the middle class is barely in existance. I live on ssi/ssd and it doesn't even pay for the right to live in an efficiency and god help if you work to make ends meet you get penalized for that. and if you live with someone you gotta count their income and there's another penalty. The cola don't mean shit because the cola isn't based on reality like the cost of apartments, the cost of bills like gas, electric, that joke called ugi, oil, transportation, water and garbage. Most landlords don't count utilities in rent anymore if you're lucky you get w/s/t included but none of the others. I was in social security not too long ago and it took everything I had not too go through that window and strangle the guy. I had filled out a waiver for something and was denied. I said so its not important that my kids have a roof over their head and blatantly told that social security don't care about the kids. That of course burnt my ass and I told him about himself where he could go and just all in all went into a rage. I figured it was easier than going to jail for attempted murder. But it just goes to show how the working class views us on it.
November 16, 2009 6:59 PM
to willie: from what I gather there is a federal law dating back to the 70's, stating s.s. cannot be reduced and if so there has to be a replacement to make up the difference. I don't have all the details but being told that is enough to tell me no matter what, the low-income and poor people still and always will pay for everything..live on little or nothing after you pay your bills from s.s., I mean that literaly Anonomous
November 17, 2009 11:18 PM
Hello. I'm on Social Security Disability, and I am totally confused about whether I WILL or WILL NOT receive another $250 economic stimulus in either late 2009 (November or December) or in 2010. I've been searching this answer for weeks and it's difficult to get past all the political talk and the confusing packages that are available for new homeowners, cars, middle-class incomes, etc., etc., that I can't find a straight and clear answer to this question.
All I want to know is: As a Social Security Disability recipient, has a bill been approved that will give me another $250 stimulus? And if so, WHEN could I expect to get this?
(As millions of other Americans, I need this information especially in light of the fact that I will NOT be receiving a cost-of-living increase, despite the fact that my medical bills have INCREASED. I also don't understand the rationale that economically, according to many talking-heads and politicians, that the economy has stabilized or is even better. Really? Someone better let the pharmacies, hospitals, physicians, imaging centers, etc., that my expenses for these services is LESS than they were last year! Seriously?!? Last year, my generic prescription costs almost DOUBLED from $4 to $7. And I'm on 21 different medications. This is a HUGE expense for me, and I, again like many others, have to ration what medications I take and can afford, even though my LIFE is at risk if I don't take the meds I need as prescribed.)
So far, what I've seen in your column, you're the closest to answering these questions clearly, so I hope you can answer this one for me.
November 17, 2009 11:30 PM
@ Carrie. I would call your local SS office again and explain your situation. You can also the national toll free number @ 1-800-772-1213.
@ Gayle – The additional 2010 payment has not been approved yet (you should have already got the 2009 payment earlier this year). President Obama wants the $250 extra payment – which will be made in Spring of 2010 if approved – but the Senate needs to approve it. So far I cannot see a bill in congress for this new payment, but I expect to see it after all the health care reform is completed later this month. I will update the article as soon as I hear anything.
Thanks to all the commenters as well and it's good to see the different viewpoints on this payment.
November 19, 2009 11:40 AM
If this is past, I would appreciate the 250 additional income. Yet, what I would like more is a cost of living adjustment increase. My bills are not getting cheaper. Necessities like food, clothing, and house hold maintenance is not flatlining in price. I have reduced all unneccessary expenses and still have nothing left over to put into savings.