"As you know, on October 16, 2012, the Social Security Administration announced that beneficiaries would receive only a 1.7% increase in 2013, the sixth-lowest increase since automatic cost of living adjustments (COLAs) began over 35 years ago. If Congress had already adopted CCPI, the 2013 COLA would be even less, at only 1.4%. However, adopting a chained consumer price index to calculate Social Security COLAs is not a small benefit change - it will compound benefit reductions dramatically over time, resulting in an annual benefit that is roughly $1,000 (2012 dollars) lower by the time a beneficiary reaches age 85. As a result, according to AARP Public Policy Institute's new report Proposed Changes to Social Security's Cost-of-Living Adjustment: What Would They Mean for Beneficiaries?, 'the CCPI will produce the largest benefit cuts during the time when older Americans need more resources to pay for increasing out-of-pocket medical costs, are most dependent on Social Security benefits, and are at the greatest risk of poverty.'"
Friday, November 09, 2012
Funny how they always cut Social Security, but cutting welfare is a non-no!