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The Senior Citizens League (TSCL) Warns of Low 2015 Cost of Living Adjustment
Date:8/7/2014

ological changes that the government has made to how it calculates consumer prices in the late 1990s have resulted in lowering the measured rate of inflation by about 7% according to the Congressional Budget Office. And leading proposal to reduce spending on Social Security would use an even more slowly growing “chained” consumer price index to calculate the increase.

That proposal may come under debate soon. The Social Security Trustees also forecast that the Social Security Disability Trust Fund is facing insolvency by 2016, and that changes to the program will have to be made, to avoid reduction in disability benefits of 20%. TSCL urges Social Security beneficiaries to learn how the candidates stand on the COLA. Here are three questions to ask the candidates:

1.    Research shows that the current Social Security COLA does not accurately represent the inflation that seniors experience. Do you support basing the COLA on an index specifically for the elderly?

2.    Older Americans have lost more than 30% of their purchasing power since 2000. What is your position on using the “chained” CPI for the calculation of COLAs, which would reduce the measured rate of inflation?

3.    The Social Security Trustees project that the Disability Insurance Trust Fund will be depleted in 2016. What do you feel should be done to restore this program’s solvency?

To learn how COLA cuts could affect your retirement income, try TSCL’s chained COLA calculator. Visit TSCL’s website at http://www.SeniorsLeague.org.

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With about 1 million supporters, The Senior Citizens League is one of the nation's largest nonpartisan seniors groups. Located just outside Washington, D.C., its mission is to promote and assist members and s
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