Automatic cost-of-living adjustments are applied to OASDI benefits to guard against inflation.(Determining Benefit Amounts)

Question

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Automatic cost-of-living adjustments (COLA) are applied to OASDI (Old-Age, Survivors, and Disability Insurance) benefits to help offset the effects of inflation on fixed income. The COLA is based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) and is typically applied every year.

Automatic Cost-Of-Living Adjustments Are Applied to OASDI Benefits to Guard