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FOR
IMMEDIATE RELEASE:
October 25, 2010
CONTACT:
Aaron Keyak
Office:
(202) 225- 5061
Cell: (202)
905 -6361
Email:
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Washington, DC -- Representative
Steve Rothman (D-NJ), a member of the House Appropriations Committee, led 40
members of the House of Representative in urging President Barack Obama to
support a one-time $500 payment to Social Security recipients in place of a
cost-of-living adjustment (COLA) for 2011. President Obama has already included
$250 for seniors this year in his 2010 budget.
Social
Security cost of living adjustments, which are based on inflation, have risen
every year since their inception in 1975. As a result of the recession,
inflation has not been sufficiently high to trigger a cost-of-living adjustment
over the past two years. Meanwhile, seniors' expenses have continued to grow
with the cost of medical care.
Immediately
following the Social Security Administration's announcement that there would be
no COLA for seniors in 2011, for the second consecutive year, Rep. Rothman
asked his colleagues to join him in signing a letter that was sent to the
President on October 22 regarding the $500 for 2011. Rep. Rothman already
supports the $250 to seniors for 2010.
"It
is clear that the Social Security Administration's current measurements used to
compute the Social Security COLA underestimates the cost-of-living expenses of
older Americans," said Rep. Rothman.
Rep.
Rothman is also a cosponsor of H.R. 2365, The Consumer Price Index for Elderly
Consumers Act, which would permanently fix the flawed formula that has left
seniors without a COLA for two years in a row. The act would take into account
the spending habits of elderly consumers specifically instead of society as a
whole. H.R. 2365 is currently pending before the House Committees on Ways and
Means, Energy and Commerce and Education and Labor.
Letter
text:
Dear President Obama:
The Social Security Administration announced today that there will be no
cost-of-living adjustment (COLA) for Social Security beneficiaries in 2011 for
the second year in a row. We appreciated your leadership on this issue
last year, when you included funds for a $250 supplemental payment for Social
Security recipients in your Fiscal Year 2011 Budget Request, and we are very
disappointed that this effort was blocked in the Senate. In light
of today's announcement, we are writing to urge you to include a $500 payment
for seniors in your Budget Request for next year to make up for the lack of
COLA for 2010 and 2011. This supplemental payment would help millions of
seniors, who depend on their hard-earned Social Security benefits, to make ends
meet.
As a result of the recession, the Consumer Price Index has not been
sufficiently high to trigger a cost-of-living adjustment over the past two
years. Medical costs, however, have continued to increase,
straining the fixed budgets of American seniors. Moreover, Medicare Part
D premiums, which are deducted from Social Security payments for many
beneficiaries, have continued to rise, leaving millions of seniors with a lower
monthly income. It is clear that the Consumer Price Index, which is
the current measure used to compute the Social Security COLA, understates
cost-of-living expenses of older Americans, who face much higher medical costs than
the rest of our society. While we must work to permanently fix this
flawed formula to ensure that this never happens again, seniors urgently need
financial relief after a second year without a COLA.
This recession, like any other economic downturn, has had the harshest effects
on the most vulnerable in our society. We owe it to American seniors to
honor the promise made to them in their working years, and ensure that they do
not face poverty in their golden years after a life of hard work.
We appreciate your leadership in protecting seniors and look forward to working
with you on this very important issue.
Sincerely,
Steve Rothman
Member of Congress
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