"Raising the retirement age would inflict further hardship among a group of workers who are likely to face health and economic problems in their 60s." –Doug Hart, President, Arizona Alliance for Retired Americans
"Of all the lies and confusion that still surround the Affordable Care Act, perhaps the greatest is that it is bad for seniors." - Dave Meinell, President, Missouri Alliance for Retired Americans
"My father died when I was three. Because of Social Security (survivors) benefits, my Mom, my younger sister and I survived." – Diane Fleming, DC Alliance Member
"We fear that Congress will balance the budget on the backs of the 98 percent, which is working Montanans and retired Montanans. We simply cannot afford these devastating cuts to vital services such as Social Security, Medicare and Medicaid," –John Forkan, President, Montana Alliance for Retired Americans
"Along with national parks and Social Security, Medicare is one of the best ideas we Americans have ever devised." -Tim Cunningham, New Mexico Alliance Member
"Seniors have earned and deserve their Social Security checks, and they shouldn't have to go to Congress every 10 years and beg for the program to be renewed." –James Parent, Alliance for Retired Americans Regional Board Member
"Today's retirees paid Medicare and Social Security taxes in every paycheck we ever earned. Now that we are retired, these programs help us to be able to stay healthy and pay our bills. They are the promise we make to people who worked hard all their lives, and we need to keep that promise for today’s workers." –Tony Fransetta, former President, Florida Alliance for Retired Americans
"Today's seniors want to lower the budget deficit. We do not want a large debt to be the legacy we leave to future generations, but we should not punish people who have paid Social Security taxes all their lives." –Jim Moore, former President, North Carolina Alliance for Retired Americans
"Social Security should remain what it has been for 77 years – a solid, reliable way that generations of workers have been able to retire with dignity, economic security, and peace of mind." –Barbara J. Easterling, President, Alliance for Retired Americans
"The fight for Social Security and Medicare is part of a larger fight for justice and fairness"—Barbara J. Easterling, President, Alliance for Retired Americans
"The health insurance reform helps not just seniors, but also middle-class families and young Americans, who are just starting to see the benefits. Don’t let Republicans take all that away." –Don Rowen, President Emeritus, Iowa Alliance for Retired Americans
"Honoring the promise of Social Security and Medicare should not be a partisan issue. Honoring the contributions that we make throughout our working years so that we may feed and clothe ourselves, keep a roof over our heads and those of our family, there is no reason for that to be a hotly contested partisan issue." –Edward Coyle, former Executive Director, Alliance for Retired Americans
"We need to make sure that people who need Social Security to make ends meet will have it, and not fall victim to ill-informed and unnecessary cuts to these vital programs."
–Barbara J. Easterling, President, Alliance for Retired Americans
|Receive Email Updates and Friday Alerts|
House Ways and Means Committee Misleads on Formula for Calculating Social Security COLA
November 05, 2013
For Immediate Release
Chained CPI Would be a Cut in Benefits – that is why Conservatives Support it
Washington, DC – The House Ways and Means Committee was misleading when it released a statement on Monday that says, “If the more accurate chained CPI was used to determine the 2014 cost of living increase, seniors would see a 1.7 percent increase as opposed to this year’s increase of 1.5 percent.” (http://tinyurl.com/l2k2s5m).
The nation’s Social Security beneficiaries will get a 1.5% increase in their monthly payments in 2014, the Social Security Administration announced last week. The program’s cost-of-living adjustment, or COLA, will be below 2% for the fourth time in the last 5 years.
“The Ways and Means Committee is intentionally trying to mislead us,” said Edward F. Coyle, Executive Director of the Alliance for Retired Americans. “Any economist will tell you, to use an earlier estimate for a figure – as they did – when an adjusted, more accurate number is available, is not sound analysis.”
“The chained Consumer Price Index (CPI) would be a cut in benefits – that is why conservatives support it,” added Mr. Coyle. “It is a cumulative cut over time.” In fact, an average earner retiring in 2011 at age 65 would lose more than $6,000 over 15 years if the chained CPI were adopted. (http://tinyurl.com/kxywnow).
Experts won't know for sure what a hypothetical chained CPI COLA would have been for 2014 until January 2016, because the chained CPI is based on surveys of consumer substitution that are not completed until up to two years after the fact. This is one of the implementation problems a chained CPI COLA would face. Over the medium and long term, Social Security’s actuaries predict substantial differences across three possible COLAs: CPI for the elderly (CPI-E), CPI for Urban Wage Earners (CPI-W), and the chained CPI. It is long-term trends that matter when it comes to the impact of COLAs on benefits, for the effect of COLAs compounds greatly over time.
The AARP had compared the September 2013 preliminary estimate to the 2012 interim estimate issued by the Bureau of Labor Statistics (BLS). The Ways and Means Republican staff, in responding to an AARP statement, went back and compared to the “preliminary estimate” for 2012 that was released last October, rather than using the corrected “interim” estimate BLS just released.
Contact: David Blank – 202/637-5275 or firstname.lastname@example.org