Harrisburg, Pennsylvania – Lawmakers have proposed new legislation aimed at adjusting Social Security benefits for Americans aged 62 and older. The Boosting Benefits and COLAs for Seniors Act, introduced by Sen. Bob Casey, D-Pa., seeks to base benefit adjustments on the Consumer Price Index for Elderly Americans (CPI-E) rather than the current Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This change is intended to better reflect the financial challenges faced by older adults.
The bill, introduced with bipartisan support from senators such as Richard Blumenthal, Peter Welch, John Fetterman, Kirsten Gillibrand, and Bernie Sanders, aims to ensure that Social Security benefits keep pace with rising costs for seniors. Sen. Casey emphasized the importance of addressing the rising costs of basic goods and services for seniors to uphold the promise of Social Security as a lifeline for those in need.
By directing the Bureau of Labor Statistics to calculate and publish the CPI-E on a monthly basis, the legislation aims to provide a more accurate reflection of the expenses incurred by older adults, particularly in areas like medical care. While the CPI-W currently used for COLA calculations includes expenses like food, consumer goods, and housing, it may not fully capture the financial strain experienced by seniors in meeting essential needs.
Social security advocates have voiced their support for the Boosting Benefits and COLAs for Seniors Act, emphasizing the need for more robust cost-of-living adjustments to address the impact of inflation on seniors’ living costs. Organizations like the National Committee to Preserve Social Security and Medicare and Social Security Works have endorsed the bill, applauding the shift to a more accurate formula, the CPI-E, that reflects the specific expenses faced by seniors.
Despite the potential benefits of transitioning to the CPI-E, some experts caution that the new index may not always result in larger benefit increases, as demonstrated by past COLAs. Concerns have also been raised about the exclusion of younger Social Security beneficiaries, such as individuals with disabilities and surviving spouses, from the scope of the CPI-E.
The ongoing debate over the proposed legislation underscores the complex dynamics involved in ensuring adequate Social Security benefits for older Americans. As lawmakers continue to advocate for adjustments that better reflect the financial realities faced by seniors, the future of COLAs for Social Security remains a subject of ongoing discussion and analysis.