State of the Union Reaction
January 28, 2014
“American families, across generations, will be encouraged to see our President acknowledge that job creation and economic insecurity are among the greatest challenges facing millions of average Americans. President Obama is right, too many have been left behind and still face unemployment, stagnant wages and an insecure future, even as the economy recovers. The President’s promise of a year of action to restore the basic bargain that built this country should also include preserving and strengthening the nation’s retirement and health security programs, Social Security and Medicare.
While we support proposals that encourage independent savings strategies, the surest and most time-tested path to economic security for older Americans is through the Social Security program. We urge the President to use his power and influence to boost the nation’s retirement system which has successfully served millions of Americans for more than 78 years.
Social Security benefits are not keeping pace with the cost of living in America. The average monthly benefit of $1269 is akin to a monthly paycheck for a worker on minimum wage. While the President is committed to raising the federal minimum wage to $10 per hour for workers, we would also like to see the President support an increase of $70 per month in Social Security benefits for retired workers as proposed by Senator Tom Harkin and Congresswoman Linda Sanchez in S.567 /H.R.3118. This benefit improvement could be paid for by lifting the payroll wage cap.
Rather than calling for benefits cuts through proposals like the Chained CPI, we should be talking about boosting benefits, adopting the more accurate consumer price index for the elderly (CPI-E) and increasing the minimum benefit formula. We urge the President to remember that reducing already modest benefits to seniors isn’t the path to economic security. The future of America’s retirees must remain a part of this debate. “…Max Richtman, NCPSSM President/CEO
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