legislators in United States House of Representatives and United States Senate is seeking to address the rising cost of living for older Americans, primarily those living on fixed incomes, by increasing monthly benefits and requiring Social Security Administration (SSA) uses a different inflation calculation formula.
The bill, known as the Seniors Benefits and COLA Act, is spearheaded in the Senate by Select Committee on Aging Chairman Bob Casey (D-Pa.) and in the House by Rep. Ruben Gallego, D-Ariz. . So far, Gallego’s House version has not secured any co-sponsors, while the Senate version is co-sponsored by four other Democrats and one of the independents, Sen. Bernie Sanders (Vt.).
“For millions of seniors in Pennsylvania and across the country, Social Security is the promise of a safe and stable retirement,” Casey said in a statement. “As the cost of basic goods and services for seniors rises, we This promise cannot be allowed to be broken. The Advance Benefits and COLA Act will help seniors cope with rising costs and ensure that Social Security remains a lifeline for all who need it.
The bill would seek to change the standard by which COLA benefits are calculated, according to the text of the bill and an accompanying fact sheet distributed by the Senate Select Committee on Aging.
“Each year, Social Security benefits are adjusted based on the cost of living adjustment (COLA) formula,” the fact sheet explains. “COLA is currently based on the previous year’s Consumer Price Index for Urban Wage Earners (CPI-W). CPI-W reflects Americans’ daily spending, including spending on food, consumer goods and housing.
However, lawmakers explained that for most seniors living on fixed incomes, Social Security benefits have not kept pace with rising costs of living.
“The Consumer Price Index for Americans 62 and Over (CPI-E) is another price index that better reflects the actual costs for seniors; for example, medical costs are weighted more heavily in CPI-E than in CPI-W,” the fact sheet states.
The bill seeks to direct SSA to recalculate cost-of-living adjustments based on CPI-E if that standard results in higher benefits for older Americans.it will also guide U.S. Bureau of Labor Statistics CPI-E is calculated and published regularly every month.
“Rising costs mean Arizona seniors receiving Social Security see the real value of their benefits decline,” Gallego said in a statement. “My new bill puts more money into Social Security recipients pockets to pay their bills, get medications and pay for housing.”
Gallego’s office acknowledged the bill is still a long way from passing the House given the Republican majority, anticipating another upending leadership challenge for Speaker Mike Johnson’s tenure in the coming days.
