FOR IMMEDIATE RELEASE
Friday, October 15th, 2010

CONTACT: Alan Mlynek
Office: (202) 225-5802

PETERS STANDS UP FOR SENIORS, DEMANDS CONGRESS FIX BROKEN SYSTEM

Lack of COLA leaves seniors behind in difficult economic times

(Troy, MI) – Representative Gary Peters called on Congress to fix a broken Social Security policy that has prevented an automatic increase in seniors’ Social Security checks.  Cost-of-Living-Adjustments (COLA) are based on a formula that tracks inflation in the economy.  Due to the recession, the formula did not provide for an automatic increase in 2010 and today the Social Security Administration announced that there would not be an automatic increase in 2011.

“While Wall Street paychecks soar, seniors face checks that are stagnant – this is unacceptable,” said Rep. Peters.  “Social Security is a sacred trust for our seniors that must be kept strong.  We cannot allow seniors to be left behind year after year.”

In 2009, in anticipation that an automatic COLA increase would not occur in 2010, Peters supported legislation that provided a $250 supplement to recipients’ checks.  In anticipation of today’s announcement that an automatic increase would not occur for 2011, Peters co-sponsored legislation last July to provide a $250 supplement again.

The median income for senior households is just $24,000, reflecting just how much Social Security means to most elderly Americans. Six in ten seniors rely on Social Security for more than half of their income, and about a third of retirees have little other than Social Security on which to live.  The same COLA applies to veterans benefits and compensation.

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