chained CPI

5 Reasons Chained CPI Is Bad For Social Security

Posted on 02/11/2013 by | AARP Blog Author | Comments

PoliticsDavid Certner is the Legislative Counsel and Director of Legislative Policy for Government Affairs at AARP. Congress and the Administration are considering, as a means of deficit reduction, a legislative change to the consumer price index – the so-called “chained CPI.” This change would have a particularly negative impact on Social Security benefits – here’s why: 1. Chained CPI compounds over time.  As a result of a chained CPI, there will be a 0.3% annual cut in Social Security cost …

Hammering an Idea for Stingier COLAs

Posted on 02/7/2013 by | Washington Watch | Comments

Bulletin Today | PoliticsThis video might leave you with the impression that nobody wants a proposed change for calculating cost-of-living adjustments (COLA). Not older Americans. Not veterans. Not women. Not labor. And certainly not independent U.S. Sen. Bernie Sanders of Vermont. That the so-called chained Consumer Price Index has no support isn’t the case, of course, or these people wouldn’t have met at the U.S. Capitol to take turns bashing the proposal. Though the formula would slow increases in Social Security, veterans and …

Unlikely Allies Against a COLA Change for Social Security

Posted on 02/5/2013 by | News | Comments

Bulletin Today | PoliticsDavid Certner, AARP legislative policy director, and Andrew G. Biggs, a resident scholar at the American Enterprise Institute for Public Policy Research, are both against a proposed change in the formula that’s used to calculate Social Security cost-of-living adjustments. That Certner and Biggs would find common ground is surprising, considering how often AARP and the AEI, a Washington, D.C., think tank, are at odds on policy issues. How surprising? Here’s Biggs’ opening remark at their moderated discussion on the issue: …

Don’t Be Fooled: Social Security Not to Blame for Budget Woes

Posted on 01/3/2013 by | Social Security | Comments

PoliticsThe immediate frenzy over the fiscal cliff may have subsided, but the drama is far from over: Next on the agenda is a debate over spending cuts — a debate that promises to be as rancorous as the one we’ve just seen. Already, budget-cutters are taking aim at Social Security. Yes, the way to calculate cost-of-living adjustments — the chained CPI, unfriendly in name and in its impact on retirees — is already back in the picture (see related video). But …

Faceoff: The Fiscal Cliff and Social Security

Posted on 12/20/2012 by | Washington Watch | Comments

Bulletin Today | Politics  Two startlingly different points of view about Social Security’s role in “fiscal cliff” negotiations took shape when experts from AARP and the Heritage Foundation recently faced off on C-Span’s Washington Journal program. On one side, Cristina Martin Firvida, AARP director of consumer affairs and financial security, argued for leaving Social Security changes out of the rushed deal-making as Congress and the White House try to agree on spending cuts and tax increases. On the other side, David John, senior …

Tell Washington Not to Cut Social Security for Current Recipients

Posted on 12/19/2012 by | Grassroots Advocacy | Comments

PoliticsPresident Barack Obama and House Speaker John Boehner are deep into negotiations on a fiscal cliff deal — and unfortunately, the hard-earned Social Security benefits of current retirees, veterans and workers with disabilities are on the table. The chained CPI proposal is positioned as a ‘slight tweak’ to the Social Security cost-of-living-adjustment (COLA). The problem is that for people who have paid into Social Security for decades, many of whom are barely scraping by with an average monthly income of under $1,300, …