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The ongoing government shutdown is delaying the announcement of the annual Social Security cost-of-living adjustment for tens of millions of beneficiaries.Originally scheduled for Wednesday, the 2024 Social Security COLA announcement will now be Oct. 24. It is timed to the September Consumer Price Index, which also has not yet been released.The agency adjusts its benefits every year based on inflation. The postponement of the announcement is the most recent example of how the government shutdown, entering its third week and with little progress made toward a resolution, has made it more difficult for people to plan out their finances.Projections by Senior Citizens League and the AARP anticipate a COLA increase of roughly 2.7%. About 70.6 million people, including retirees, disabled people and children, get Social Security benefits.Social Security Administration beneficiaries have voiced concerns that next year’s increase will not be enough to counter rising costs.Sue Conard, a 75-year-old retired nurse from La Crosse, Wisconsin, and SSA recipient, recently traveled to the U.S. Capitol with other retiree members of the American Federation of State, County and Municipal Employees union to lobby for meaningful progress towards gaining health care protections to end the shutdown, as well as changes to Social Security benefits.She said she wants lawmakers to change the calculation on how the COLA is determined since the standard CPI gauge, which includes a market basket of consumer goods and services, doesn’t take into account many costs typical for older Americans.“The issue of how the COLA is determined is flat-out wrong because health care is not factored into the CPI,” said Conard, speaking on the front steps of the Longworth House Office Building.Some lawmakers have proposed legislation that would make SSA use a different index, called the Consumer Price Index for the Elderly (CPI-E), to calculate the cost-of-living increase that measures price changes based on the spending patterns of older people on things such as health care, food and medicine.A collection of Democratic lawmakers has proposed legislation to change the CPI calculation for COLA benefits to the CPI-E. Last session, Sen. Bob Casey, D-Pa., proposed a law that would change the COLA calculation, but that never got a hearing in the Senate Finance committee.AARP CEO Myechia Minter-Jordan said the COLA “isn’t just a source of income it’s a lifeline of independence and dignity, for tens of millions of older Americans.” But even with an adjusted COLA, a majority of Americans still face challenges covering basic expenses, she said.Vanessa Fields, a 70-year-old former social worker and AFSCME member from Philadelphia, said she pays roughly $1,000 per month for groceries, more than in previous years. The COLA doesn’t keep up with rising costs, she said, “and we’re going to be in bad shape if lawmakers don’t act.”The agency is expected to begin notifying recipients about their new benefit amount starting in early December. A spokesperson for Social Security who spoke on the condition of anonymity to preview the COLA said retirement and Supplemental Security Income benefits would be adjusted beginning Jan. 1, 2026, without any delay despite the current government lapse in appropriations.The delayed COLA announcement comes as the national social insurance plan faces a severe financial shortfall in the coming years and as the agency has seen substantial workforce cuts.The annual Social Security and Medicare trustees report released in June said the program’s trust fund will be unable to pay full benefits beginning in 2034, instead of last year’s estimate of 2035. If the trust fund is depleted, the government will be able to pay only 81% of scheduled benefits, the report said.In addition, the agency laid off at least 7,000 people from its workforce of 60,000 earlier this year, putting pressure on the remaining workers to handle claims and answer inquiries from a rising number of recipients. Fatima Hussein, Associated Press
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E-Commerce
The government shutdown is delaying another major economic report, leaving policymakers at the Federal Reserve with a cloudier picture even as the economy enters a challenging phase of stubbornly persistent inflation and a sharp slowdown in hiring.The Labor Department’s monthly inflation data was scheduled for release Wednesday, but late last week was postponed until Oct. 24. The department is recalling some employees to assemble the data, which was collected before the shutdown began. The figures are needed for the government to calculate the annual cost of living adjustment for tens of millions of recipients of benefit programs such as Social Security.The shutdown could make things worse for agencies like the Fed if it continues, because government agencies cannot collect the raw data that are then compiled into the monthly reports on jobs, inflation, and other economic trends. The September employment report, for example, which was due to be released Oct. 3 but was not issued because of the shutdown, was essentially completed before the government closed and could be released fairly quickly once the shutdown ends. But October data could be delayed much longer.Federal Reserve Chair Jerome Powell said Tuesday in remarks to the National Association for Business Economics that the central bank for now is looking at data from the private sector, such as payroll processor ADP, which issues its own monthly report on hiring by U.S. businesses, to gauge the economy. It is also relying on anecdotal reports from the hundreds of businesses that the regional Fed banks consult with.But while there are many firms that compile jobs-related data, there are fewer alternative sources of information to track inflation and growth, Powell added.“We’ll start to miss that data and particularly the October data,” Powell said. “If this goes on for a while, they won’t be collecting it. And it could become more challenging.”The Fed is already in a difficult spot, Powell has said, as it grapples with two policy goals that are nearly in conflict. It is tasked by Congress with seeking both maximum employment and stable prices.Right now, inflation remains above the Fed’s target of 2%, with the latest figures showing prices rose 2.9% compared with a year earlier, according to the Fed’s preferred measure. Typically, elevated inflation would lead the Fed to raise its key interest rate, or at least keep it elevated.Yet hiring has also weakened considerably, and the unemployment rate has ticked up to a still-low 4.3% in August from 4.2% in the previous month. When the Fed’s other goal of maximum employment is threatened, it usually responds with the opposite approach: Cutting rates to spur more borrowing and spending.On Tuesday, Powell noted those challenges and said, “There really isn’t a risk-free path.” Christopher Rugaber, AP Economics Writer
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E-Commerce
Households that have bought Bens Original rice products will want to check their pantries right away. The brand, owned by food giant Mars, has issued a voluntary recall for select rice products. At issue is the possibility of small stones mixed in the rice, which could cause intestinal and other damage if consumed. Heres what you need to know about the Bens Original rice recall. Whats happened? On October 10, Bens Original announced a voluntary recall of some of its rice products. That recall notice was later published on the U.S. Food and Drug Administrations (FDA) website on October 14. The voluntary recall was initiated after Bens Original discovered that some of its rice products may contain small stones mixed within the rice. The recall notice states that these objects are small, naturally occurring stones originating from the rice farm. According to the recall notice, if the rice products do have small stones in them, the objects pose possible risk of oral or digestive tract injury if consumed. What products are being recalled? Bens Original says the recalled items only include a limited number of three select products. Whether the product is included in the recall depends on the batch codes and best by dates listed on the products packaging. The recalled products include: Ben’s Original Ready Rice Long Grain White Rice: batch codes 533ELGRV22 or 534ALGRV22 and Best By date of August 2026. Ben’s Original Ready Rice Whole Grain Brown Rice: batch codes 534AMGRV22, 534BMGRV22, or 534DMGRV22 and the best buy date of August 2026. Bens Original Ready Rice Long Grain & Wild Rice: batch codes 533BMGRV22, 533CLGRV22, or 533CMGRV22 and the best by date of August 2026. Where were the recalled products sold? According to the recall notice, the recalled products were sold at numerous stores across America. Depending on the specific recalled item, those stores may include: Amazon HEB Piggly Wiggly Target United Markets But the recalled products may have been sold at additional stores, the notice cautions. Impacted retailers are not limited to the ones mentioned in the recall notice as additional retailers may have purchased products distributed by Associated Grocers, C&S, and Dot Foods from August through September. Has anyone been harmed? Thankfully, the recall notice states that no reports of injury or illness in relation to the recalled products have been reported to date. However, as the recalled products have a long shelf life with a best by date of August 2026, it’s likely the recalled products are still sitting in many peoples cupboards. What should I do if I have the recalled products? The recall notice warns consumers who are in possession of the recalled products not to consume them. Instead, consumers should contact Bens Original Consumer Care to start the return process. The number consumers should call is 1-800-548-6253. Full details of the recall can be found on the recall notice here.
Category:
E-Commerce
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