February 20, 2014
“Reports that President Obama will not include cuts to Social Security through adoption of the Chained CPI in his 2015 budget is welcome news for millions of seniors, veterans and people with disabilities who are tired of their modest benefits being used as deficit reduction bargaining chips. While it appears the White House has, for now, listened to the vast majority of Americans, of all ages and political parties, the President has still left the door open for more “let’s make a deal” bargaining with seniors’ benefits. He’s taking one step forward by keeping the Chained CPI out of his budget. We hope he won’t end up taking one step back by offering it up again later during any budget talks.
The chained CPI was a flawed idea from the start targeting both current and future retirees. It would cut benefits by 3% for workers retired for ten years and 6% for workers retired for twenty years. 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. We applaud the President for listening to members of Congress and Americans nationwide who have made the case repeatedly that cutting benefits to middle-class families is not the way to balance our books.
Unfortunately, it appears the White House will keep its plan to further means test Medicare in its 2015 budget proposal. Further means-testing Medicare continues to undermine the social insurance nature of Medicare and ultimately raises costs for middle and lower-income seniors who depend on it.”…Max Richtman, NCPSSM President & CEO
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