Americans Work Longer for Fewer Retirement Benefits
Kudos to Kathy Ruffing at the Center on Budget and Policy Priorities for her research highlighted in today’s Off the Charts blog post.
“U.S. seniors are more likely to be in the workforce than their peers in almost every other developed country. Nearly 30 percent of Americans ages 65 through 69 were employed in 2012. That’s about three times the European average, according to the Organisation for Economic Co-operation and Development (see chart).”
We suggest you read the entire blog post for the full picture of just how poorly the U.S. stacks up when compared to how other nations treat their seniors. As CBPP puts it:
“The moral? Our seniors already work harder and get lower benefits than their counterparts in most other rich countries. So imposing big benefit cuts on ordinary seniors would be the wrong way to restore Social Security solvency.”
We couldn’t agree more!
House GOP Plan Cuts Benefits for Current Seniors, Veterans and the Disabled
Draft legislative language released by the House Social Security Subcommittee last night would cut benefits for millions of middle-class and poor Americans still struggling in this economy by adopting a new formula to calculate cost of living adjustments. NCPSSM President, Max Richtman, reacted this way:
“Contrary to claims by some in Washington, the chained CPI is not a ‘technical tweak,’ and no amount of rationalization can make it so. In reality, the chained CPI is a benefit cut for the oldest and most vulnerable Americans who would be least able to afford it.
Cutting benefits by adopting the chained CPI would cut the COLA by 3% for workers retired for ten years and 6% for workers retired for twenty years. This cut targets both current and future retirees. Three years after enactment, this translates to a benefit cut of $130 per year in Social Security benefits for a typical 65 year-old. The cumulative cut for that individual would be $4,631 or more than three months of benefits by age 75. While supporters claim the chained CPI is more accurate; you have to ask yourself, if this chained CPI really is more accurate, then why the need to offer an incremental benefit “bump” to some beneficiaries? The answer is simple. The chained CPI does not accurately measure these groups’ expenses; in fact, it makes most of the same errors as the current formula and adds a few. Adoption of this new formula is really about cutting benefits and raising taxes on average Americans to reduce the deficit.
While supporters, including the White House, have attempted to wrap this benefit cut in promises to ‘preserve or protect’ Social Security, the stark truth is it’s actually a direct assault on the safety net millions of middle-class and poor seniors and their families depend on.”
Seniors won’t be fooled by Orwellian language which attempts to portray austerity as “accuracy”.
“The current formula, the CPI-W, reflects the expenditures of about 31 percent of households nationally; specifically, wage and clerical households in urban areas. By definition, this population is employed, unlike most retired Social Security beneficiaries. Research has shown that spending patterns differ between the elderly and the general population, especially on health care. Seniors 65 and older spend more than twice as much on health care, and those 75 and older spend nearly three times more than younger consumers. Not only do health care expenditures steadily increase with age but health care costs consistently rise much faster than general inflation. The current price index (CPI-W) does not take these critical differences in the elderly population into consideration. The chained CPI doubles-down on that flaw. Even worse, the proposed chained CPI will cut COLAs immediately for current and future retirees, veterans, the poor and people with disabilities.
For millions of seniors living on fixed incomes and the average $14,000-per-year Social Security benefit, it’s frankly unimaginable that some in Washington believe those benefits are too generous. Our nation faces an impending retirement crisis yet rather than address that issue head-on, Washington is instead proposing cuts to the only guaranteed source of income for many retirees, Social Security. It simply makes no sense — unless your true goal is austerity not accuracy.” Max Richtman, Huffington Post
This chained CPI proposal is just the first of many benefit cutting proposals the House Social Security subcommittee is expected to release in coming weeks. Incredibly, Chairman, Rep. Dave Camp (R-MI) says he wants your feedback. So we say, let’s give it to him. Email Chairman Camp at:
Tell him how losing thousands of dollars in Social Security benefits will hurt you and your family. Tell the House GOP leadership “NO” to the chained CPI.
Actually, No! (Fill in the Blank) Won’t Bankrupt Social Security
It seems the “go-to” argument for Washington conservatives opposed to funding anything they don’t like these days is “it will bankrupt Social Security”. We heard it with immigration reform and we heard it again with the repeal of DOMA. Problem is, it’s just not so.
Eric Laursen with the People’s Pension breaks it down simply:
“neither change will break us. According to the Congressional Budget Office, the additional cost to Social Security in 2014 of recognizing same-sex marriages in 2004 would be $350 billion over 75 years. That raises the estimated impact a grand total of .01% of covered payroll, from 16.03% to 16.04%. Meanwhile, Social Security chief actuary Steve Goss calculates that immigration reform as embodied in the Senate bill will add $500 billion to the assets in the Social Security trust funds over 25 years, and $4 trillion over 75 years. (One major reason is that these immigrants don’t have parents collecting benefits—when they retire, their children’s contributions will cover their benefits.)”
We also took on Fox News’ bogus claims at NCPSSM’s Equal Time
Repeal of DOMA & Social Security Equity
Repeal of the Defense of Marriage Act (DOMA) impacts more than one thousand areas of federal law, including Social Security. So, it’s no surprise that implementation details and timelines are still being debated today…and likely will be for awhile. However, delay is not an option. The Obama administration needs to act quickly to reverse the benefit inequity that was at the heart of the high court’s ruling. Specifically, the Social Security Administration must move quickly to review and revise its policies regarding benefits for same-sex couples.
Reuters’ Mark Miller details some of the Social Security and Medicare issues to be resolved after the DOMA repeal:
The extension of Social Security spousal and survivor benefits is today’s most significant retirement benefit story. But experts point to ambiguity about exactly how the DOMA decision will reverberate through the Social Security program.
WHERE YOU LIVE
Same-sex couples who were married in states recognizing gay marriage, and who still live in that state, will be recognized for purposes of federal benefits. But the picture gets murkier for married couples who move to states that don’t recognize same-sex marriage. The Social Security Act’s definition of a spouse relies on the definitions in the state where an applicant lives.
What happens now to a couple that is married in a state that recognizes legal same-sex marriage, but currently lives in one that doesn’t?
CHILDREN
Children constitute a major category of Social Security beneficiaries. The Social Security Administration says 4.4 million children receive benefits because one or both of their parents are disabled, retired or deceased.
Adopted children generally are eligible to file on the record of either parent in the case of heterosexual couples, but some states don’t recognize joint adoption. That could impact same-sex couples who adopt, says Webster Phillips, senior legislative representative at The National Committee to Preserve Social Security and Medicare.
“Prior to the repeal of DOMA,” Phillips said, “a child could qualify on a parent’s record, but not on that of a stepparent. Will that change now? We’ll have to see how far the Obama Administration goes in the way it interprets and implements the court’s decision.”
Our advice to same-sex couples who qualify is to apply for benefits now while Washington hammers out the details.
Americans Work Longer for Fewer Retirement Benefits
Kudos to Kathy Ruffing at the Center on Budget and Policy Priorities for her research highlighted in today’s Off the Charts blog post.
“U.S. seniors are more likely to be in the workforce than their peers in almost every other developed country. Nearly 30 percent of Americans ages 65 through 69 were employed in 2012. That’s about three times the European average, according to the Organisation for Economic Co-operation and Development (see chart).”
We suggest you read the entire blog post for the full picture of just how poorly the U.S. stacks up when compared to how other nations treat their seniors. As CBPP puts it:
“The moral? Our seniors already work harder and get lower benefits than their counterparts in most other rich countries. So imposing big benefit cuts on ordinary seniors would be the wrong way to restore Social Security solvency.”
We couldn’t agree more!
House GOP Plan Cuts Benefits for Current Seniors, Veterans and the Disabled
Draft legislative language released by the House Social Security Subcommittee last night would cut benefits for millions of middle-class and poor Americans still struggling in this economy by adopting a new formula to calculate cost of living adjustments. NCPSSM President, Max Richtman, reacted this way:
“Contrary to claims by some in Washington, the chained CPI is not a ‘technical tweak,’ and no amount of rationalization can make it so. In reality, the chained CPI is a benefit cut for the oldest and most vulnerable Americans who would be least able to afford it.
Cutting benefits by adopting the chained CPI would cut the COLA by 3% for workers retired for ten years and 6% for workers retired for twenty years. This cut targets both current and future retirees. Three years after enactment, this translates to a benefit cut of $130 per year in Social Security benefits for a typical 65 year-old. The cumulative cut for that individual would be $4,631 or more than three months of benefits by age 75. While supporters claim the chained CPI is more accurate; you have to ask yourself, if this chained CPI really is more accurate, then why the need to offer an incremental benefit “bump” to some beneficiaries? The answer is simple. The chained CPI does not accurately measure these groups’ expenses; in fact, it makes most of the same errors as the current formula and adds a few. Adoption of this new formula is really about cutting benefits and raising taxes on average Americans to reduce the deficit.
While supporters, including the White House, have attempted to wrap this benefit cut in promises to ‘preserve or protect’ Social Security, the stark truth is it’s actually a direct assault on the safety net millions of middle-class and poor seniors and their families depend on.”
Seniors won’t be fooled by Orwellian language which attempts to portray austerity as “accuracy”.
“The current formula, the CPI-W, reflects the expenditures of about 31 percent of households nationally; specifically, wage and clerical households in urban areas. By definition, this population is employed, unlike most retired Social Security beneficiaries. Research has shown that spending patterns differ between the elderly and the general population, especially on health care. Seniors 65 and older spend more than twice as much on health care, and those 75 and older spend nearly three times more than younger consumers. Not only do health care expenditures steadily increase with age but health care costs consistently rise much faster than general inflation. The current price index (CPI-W) does not take these critical differences in the elderly population into consideration. The chained CPI doubles-down on that flaw. Even worse, the proposed chained CPI will cut COLAs immediately for current and future retirees, veterans, the poor and people with disabilities.
For millions of seniors living on fixed incomes and the average $14,000-per-year Social Security benefit, it’s frankly unimaginable that some in Washington believe those benefits are too generous. Our nation faces an impending retirement crisis yet rather than address that issue head-on, Washington is instead proposing cuts to the only guaranteed source of income for many retirees, Social Security. It simply makes no sense — unless your true goal is austerity not accuracy.” Max Richtman, Huffington Post
This chained CPI proposal is just the first of many benefit cutting proposals the House Social Security subcommittee is expected to release in coming weeks. Incredibly, Chairman, Rep. Dave Camp (R-MI) says he wants your feedback. So we say, let’s give it to him. Email Chairman Camp at:
Tell him how losing thousands of dollars in Social Security benefits will hurt you and your family. Tell the House GOP leadership “NO” to the chained CPI.
Actually, No! (Fill in the Blank) Won’t Bankrupt Social Security
It seems the “go-to” argument for Washington conservatives opposed to funding anything they don’t like these days is “it will bankrupt Social Security”. We heard it with immigration reform and we heard it again with the repeal of DOMA. Problem is, it’s just not so.
Eric Laursen with the People’s Pension breaks it down simply:
“neither change will break us. According to the Congressional Budget Office, the additional cost to Social Security in 2014 of recognizing same-sex marriages in 2004 would be $350 billion over 75 years. That raises the estimated impact a grand total of .01% of covered payroll, from 16.03% to 16.04%. Meanwhile, Social Security chief actuary Steve Goss calculates that immigration reform as embodied in the Senate bill will add $500 billion to the assets in the Social Security trust funds over 25 years, and $4 trillion over 75 years. (One major reason is that these immigrants don’t have parents collecting benefits—when they retire, their children’s contributions will cover their benefits.)”
We also took on Fox News’ bogus claims at NCPSSM’s Equal Time
Repeal of DOMA & Social Security Equity
Repeal of the Defense of Marriage Act (DOMA) impacts more than one thousand areas of federal law, including Social Security. So, it’s no surprise that implementation details and timelines are still being debated today…and likely will be for awhile. However, delay is not an option. The Obama administration needs to act quickly to reverse the benefit inequity that was at the heart of the high court’s ruling. Specifically, the Social Security Administration must move quickly to review and revise its policies regarding benefits for same-sex couples.
Reuters’ Mark Miller details some of the Social Security and Medicare issues to be resolved after the DOMA repeal:
The extension of Social Security spousal and survivor benefits is today’s most significant retirement benefit story. But experts point to ambiguity about exactly how the DOMA decision will reverberate through the Social Security program.
WHERE YOU LIVE
Same-sex couples who were married in states recognizing gay marriage, and who still live in that state, will be recognized for purposes of federal benefits. But the picture gets murkier for married couples who move to states that don’t recognize same-sex marriage. The Social Security Act’s definition of a spouse relies on the definitions in the state where an applicant lives.
What happens now to a couple that is married in a state that recognizes legal same-sex marriage, but currently lives in one that doesn’t?
CHILDREN
Children constitute a major category of Social Security beneficiaries. The Social Security Administration says 4.4 million children receive benefits because one or both of their parents are disabled, retired or deceased.
Adopted children generally are eligible to file on the record of either parent in the case of heterosexual couples, but some states don’t recognize joint adoption. That could impact same-sex couples who adopt, says Webster Phillips, senior legislative representative at The National Committee to Preserve Social Security and Medicare.
“Prior to the repeal of DOMA,” Phillips said, “a child could qualify on a parent’s record, but not on that of a stepparent. Will that change now? We’ll have to see how far the Obama Administration goes in the way it interprets and implements the court’s decision.”
Our advice to same-sex couples who qualify is to apply for benefits now while Washington hammers out the details.