In 10/99 the Bureau of Labor Statistics (BLS) released a Consumer Price Index (CPI)
amount that resulted in SSA establishing a COLA of 2.4% effective 12/99. In 9/00 the
BLS announced the discovery of an error in the software used to compute the earlier
CPI amount. If not for this error SSA's COLA for 12/99 would have been 2.5%. As a
result of special legislation concerning this error, in 7/01 SSA adjusted the COLA
for those affected and made a special one-time payment to make up for any shortfall
they experienced from 12/99 through 6/01. All payments made before 7/01 were based
on the 2.4% increase and are considered to be correct. They will remain posted as
paid. This section explains the July 2001 increase. All information about the special
one-time payment is now in RS 00601.123.