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    THE NATIONAL COMMITTEE TO PRESERVE SOCIAL SECURITY & MEDICARE
    ~ Trusted ~ Independent ~ Effective ~

    November 17, 2011

    NEWS RELEASE

    Supercommittee COLA Proposal is a Back Door Benefit Cut That Will Hurt Generations of Middle Class Americans

    New Poll Shows Vast Majority of Americans Oppose
    Cutting COLA's for Deficit Reduction

    As the Congressional supercommittee's deadline looms, one provision that some members of both parties hope will fly under the public's radar is a plan to cut the cost of living adjustment (COLA) for America's seniors, disabled, survivors and veterans.  While Washington 's fiscal hawks try to downplay the proposal's impact by calling it a "technical" tweak the truth is switching to a Chained-CPI will permanently cut COLAs for generations of middle class Americans, making it harder and harder for them to make ends meet.  Estimates based on an analysis by the Social Security Actuary show that over time the annual benefit cut will total almost $1,400 and will impact both current and future retirees. The goal of this provision is to save the government billions for deficit reduction by taking it directly from the pockets of seniors, the disabled and veterans.

    "While some in Washington may have hoped changing the COLA formula would fly under the average Americans' radar, the truth is just the opposite.  In fact, a new national poll about to be released shows a huge majority oppose reducing the federal deficit by cutting COLA increases.  Not only do Americans reject this back door benefit cut, the majority polled feel so strongly about it they would vote against any Member of Congress who supports such a move.  Again and again the American people have said they want fiscal sanity returned to Washington but they also know targeting the middle-class for benefit cuts while making tax cuts for the wealthy permanent is anything but fiscally responsible." Max Richtman , NCPSSM President/CEO     

    The National Committee believes it is critical that the COLA be calculated based on an accurate formula.  If accuracy is truly the goal, Congress should change the COLA formula to factor in the actual expenses most seniors face, including health care.  NCPSSM endorsed legislation introduced this week by Senators Sherrod Brown (D-OH) and Barbara Mikulski (D-MD) to replace the current COLA formula with a new measure (the CPI-E) created specifically for Americans over 62 years old. 

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    The National Committee, a nonprofit, nonpartisan organization acts in the interests of its membership through advocacy, education, services, grassroots efforts and the leadership of the Board of Directors and professional staff. The work of the National Committee is directed toward developing better-informed citizens and voters.

    Media Inquiries to:
    Pamela Causey 202-216-8378/202-236-2123
    Kim Wright 202-216-8414
    www.ncpssm.org