A cost-of-living adjustment (COLA) is an increase in INCOME to compensate for INFLATION. As the general level of prices rises (inflation), the purchasing power of a fixed amount of income decreases. COLAs protect against inflation by raising incomes, or benefits. Almost all COLAs in the United States are tied to the CONSUMER PRICE INDEX (CPI). The most widely cited use of COLAs is by the Social Security Administration (SSA). SOCIAL SECURITY (Old Age Survivors and Disability Income, OASDI) and SUPPLEMENTAL SECURITY INCOME (SSI) are adjusted annually based on changes in the Urban Wage Earners and Clerical Workers Consumer Price Index (CPIW). Since 1975 the SSA has used the third-quarter-tothird- quarter change in the CPI-W to adjust benefits at the beginning of each year. In 1980 Social Security benefits were increased by 14.3 percent, while in 1998 benefits were increased only 1.3 percent. In addition to being used to adjust government benefits programs, COLAs are often incorporated into UNION contracts and child-support orders. COLAs are also used to adjust for regional differences in the cost of living. Companies often adjust salaries of workers when transferring them to high-cost areas. Manhattan (New York City), Honolulu, and Alaska are relatively expensive places to live in the United States, while most midwestern cities and smaller towns are less expensive. The U.S. military also uses COLAs when transferring personnel to high-cost areas around the world. People whose major sources of income are not protected by COLAs face declining purchasing power over time and rapid decreases in purchasing power during periods of severe inflation. Many pensioners in former Soviet countries saw their incomes vanish during the break-up of the Soviet Union.