Most Social Security benefits are paid to older Americans who have contributed a portion of their lifetime wages into this retirement fund. These benefits are currently calculated using the CPI-W, or the Consumer Price Index for urban Wage Earners and Clerical Workers. This process analyzes the price change in a â€œbasketâ€ of goods and services these workers typically purchase. The resulting increase or decrease of these prices over time reflects the amount of inflation in our economy. To counteract the effects of inflation, our Social Security Administration periodically increases benefits by what it calls Cost of Living Adjustments (COLA). Not long ago, our current administration proposed using a different CPI, Chained CPI, to set COLA increases for these benefits. Studies show this method would reduce Social Security benefit increases but would save the government $13 billion/year. Also, advocates claim the CPI basket of goods and services used to calculate inflation is different for the elderly than it is for younger consumers. Studies have shown a much higher rate of inflation for essentials such as housing and healthcare on which seniors spend much of their income. Advocates say seniors need their own CPI for Social Security benefits to keep pace with inflation.
H.R.1585 – Guaranteed 3% COLA for Seniors Act of 2013
I oppose reforming current Consumer Price Index and wish to defeat H.R.1585
I support directing Department of Labor to prepare and publish a monthly Consumer Price Index for Elderly Consumers that indicates changes over time in expenditures for consumption which are typical for individuals in the United States age 62 or older; amending title II (Old Age, Survivors and Disability Insurance) of the Social Security Act to: require the use of such index to compute cost-of-living increases for Social Security benefits; and to provide, in the case of individuals who have attained age 62, for an annual cost-of-living increase of at least 3%, and wish to pass H.R.1585
I support identifying a legislator who will sponsor a bill to use Chained