The government did not cancel the “cost of living” increases. In 2009, there was no increase in prices, and therefore no increase in the cost of living. The annual COLA increases are formulaic, tied to a specific measure of inflation. There was no inflation this year, therefore no increase payments. In fact, prices for the goods that make up most of a senior citizen’s consumption actually fell this year, and because their SS payments stayed the same the real value (meaning the inflation adjusted value) of their SS checks actually went up. This is the first time that has happened in decades.