5 Reasons Chained CPI Is Bad For Social Security

David 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

This 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

David 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: …

Tell Washington Not to Cut Social Security for Current Recipients

President 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, …

A Look Back – and Thank You

As the year winds down, we find ourselves pondering what really mattered in the last 365 days.  For us, the answer is easy – you.  Your petitions, phone calls, and emails to legislators made it possible for us to accomplish so much to improve the lives of older Americans in this country – and for that we are most grateful.

The Takeaway: COLA Increase Likely; Avoiding ‘Government Shutdown’ For Good

After two years with no increase in Social Security cost-of-living allowances (COLA), benefits are expected to rise as much as 3.5 percent in 2012 … For the 14th year in a row, Congress missed the deadline for passing a budget bill for the upcoming fiscal year (is there a better way?).