U.S. warns elderly will not get benefits rise next year

People line up to receive a flu vaccine at a Virginia grocery store in a file photo.

WASHINGTON (Reuters) - Elderly and disabled Americans will see no boost in their Social Security checks next year for the first time since 1975 due to scant inflation, the U.S. government said on Thursday.

Instead, President Barack Obama has proposed giving them a one-time check for $250 in 2010, at a cost of $13 billion, to help to help senior citizens, disabled people and military veterans weather the economic recession.

The annual cost of living adjustment for the 57 million people receiving monthly Social Security and Supplemental Security Income benefits is pegged to the Consumer Price Index.

"Last year when consumer prices spiked, largely as a result of higher gas prices, beneficiaries received a 5.8 percent COLA, the largest increase since 1982," Michael Astrue, Commissioner of Social Security, said in a statement.

This year there was no increase in the CPI from the third quarter of 2008, he said, and in fact, the specific index benefits are pegged to fell 1.7 percent over the year ending in September.

"This year, in light of the human need, we need to support President (Barack) Obama's call for us to make another $250 recovery payment for 57 million Americans," Astrue said.

This would extend the one-year $250 "Economic Recovery Payments" program approved this year as part of the $787 billion economic stimulus package.

Congress would need to draft legislation enacting the measure and approve it.

(Reporting by Tabassum Zakaria; Editing by Jackie Frank)