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I am pleased to share important information with you regarding Social Security and updates concerning Social Security's Cost of Living Adjustment (COLA) for 2013.

How COLA Works, Changes in 2013          

The Social Security Act governs the process by which the Social Security Administration (SSA) determines whether a Cost of Living Adjustment (COLA) can be applied to Social Security and Supplemental Security Income (SSI) benefits. Under the formula provided in the Social Security Act, the COLA is linked to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). In October of 2013, the Social Security Administration announced that the CPI-W increased by 1.5 percent over the statutorily required measuring period that compared the third quarter of 2012 to the third quarter of 2013. As a result, Social Security beneficiaries saw a COLA increase reflected in their checks starting in January 2014. Increased payments to SSI recipients began December 30, 2013.

According to the Social Security Administration, Social Security beneficiaries' estimated average monthly benefit amount for 2014 rose from $1,275 to $1,294. The maximum Federal Supplemental Security Income (SSI) monthly payment to an individual rose from $710 to $721. For a couple, the maximum Federal SSI payment rose from $1,066 to $1,082.

2012 marked the first time Social Security beneficiaries received a Cost of Living Adjustment (COLA) since 2009. With the exception of those years, seniors have received an annual COLA increase since 1975. While I am happy that beneficiaries received an increase the past two years, I still have concerns about using the CPI-W formula due to the projected increases in Medicare and other healthcare-related costs for our senior citizens.

Protecting the Future of Social Security and Medicare

Today’s beneficiaries and those nearing retirement are depending on Social Security and Medicare to meet their healthcare and living expenses. However, as more retirees enter these programs and fewer workers pay into them (due to population growth, longer life expectancy, as well as the current high unemployment rate), the solvency of both Social Security and Medicare is at risk. We need to address this issue with common-sense solutions in order to protect the future of these vital programs.

Job creation and a healthy economy go hand-in-hand. Washington must work to strengthen America's economy so businesses will begin to hire more workers. When more Americans are working, we broaden the number of Americans who contribute to Social Security and Medicare.

Preserving Social Security and Medicare is one of my top priorities in Congress. I have always supported Social Security and Medicare,and I will continue to vote to make sure that we honor our contracts with our senior citizens and also preserve these programs for future generations.