The December 2018 COLA was not retroactive

The Cost of Living Adjustment (COLA) that took effect in December 2018 applied only to payments you received starting in January 2019. You did not receive a lump sum for the months between your last payment under the old rate and when the new rate began. The increase was roughly 2.8 percent that year.

This is how COLA increases have always worked for SSDI. The new percentage applies to your ongoing monthly payment going forward, not backward to earlier months in the same year. If you were receiving SSDI in November 2018, your December payment reflected the old rate. Your January 2019 payment reflected the new rate.

The only exception to this rule is if you were not yet receiving SSDI when the COLA took effect. If you were approved for benefits after January 2019, your first payment would use the new 2.8 percent rate — you would not receive a lower amount and then a catch-up payment later.

Key Takeaways

  • COLA increases explore to your monthly payment starting the first month they take effect, not to months before that date.
  • The 2018 COLA of 2.8 percent appeared in your January 2019 payment, not in any payment from 2018.
  • You do not receive a retroactive lump sum payment covering the gap between the old rate and the new rate.
  • If you were approved for SSDI after the COLA took effect, your first payment used the new rate automatically.

When the COLA takes effect each year

Social Security announces the COLA percentage in October, and it becomes effective on January 1 of the following year. Your first payment at the new rate arrives in January. This timing is the same every year — there is no variation based on when you started receiving benefits or what your payment amount is.

The Social Security Administration does not issue retroactive payments for COLA increases. This is a fixed rule, not something that changes from year to year or from person to person. If you were receiving SSDI in 2018, you received the 2018 rate for all of 2018, and the 2019 rate starting in January 2019.

Why COLA increases work this way

COLA is designed to adjust your ongoing payment for inflation that has already happened. It is not meant to compensate you for inflation in past months. The increase takes effect at the start of the new calendar year so that Social Security can recalculate all benefit amounts at once, rather than making individual adjustments for each recipient on different dates.

This approach also keeps the system simpler to administer. If COLA increases were retroactive, Social Security would have to calculate and issue lump sum payments to millions of people, which would create delays and errors. By explore the increase only to future payments, the system can process the change more reliably.

What to do if your payment amount seems wrong

If you received a payment in January 2019 and the amount did not seem to reflect a 2.8 percent increase from your December 2018 payment, contact Social Security directly. Call 1-800-772-1213 (TTY 1-800-325-0778) or visit your local Social Security office. Have your payment stubs from December 2018 and January 2019 ready so you can compare the amounts.

Social Security can explain why your specific payment changed the way it did. Sometimes other factors — such as a change in your work record, a change in family composition, or a change in your Medicare premiums — affect your payment amount in addition to the COLA increase. An agent can walk through your account and show you exactly what changed.

How to find your COLA information

You can see your current payment amount and the date it took effect by logging into your my Social Security account at ssa.gov. The account shows your payment history month by month, so you can compare December 2018 to January 2019 and see the increase yourself.

If you do not have a my Social Security account, you can create one at ssa.gov/myaccount. You will need your Social Security number, email address, and a way to verify your identity — usually a driver's license or passport. Once you log in, your payment history is under "Benefit Verification" or "Payment History," depending on which version of the site you see.

Frequently Asked Questions

Did I miss out on money because the 2018 COLA was not retroactive?

No. COLA increases are never retroactive for any recipient. The increase applies to your payment going forward, starting in January 2019. This is how the system has always worked, and it applies equally to everyone receiving SSDI.

What if I was approved for SSDI in late 2018?

If you were approved in November or December 2018, your first payment would have used the 2018 rate. Starting in January 2019, your payment would reflect the 2.8 percent increase. You would not receive a catch-up payment for the months between approval and the COLA effective date.

Can I request a retroactive COLA payment?

No. Social Security does not issue retroactive COLA payments under any circumstances. The policy applies to all recipients equally. If you believe your payment is incorrect for a different reason, contact Social Security to review your account.

How do I know what my payment was before the 2018 COLA?

Log into your my Social Security account and view your payment history. You will see the exact amount for each month, including December 2018 and January 2019. This shows you the difference between the old rate and the new rate.