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Zero
Social Security COLA Increase until 2013 for
37 Million Senior Citizens
WASHINGTON - (Business Wire) The 37 million
Americans aged 65 and over who receive a
Social Security check each month are
forecast to receive no increase in their
Social Security checks until 2013.
Seniors have never failed to receive an
annual increase of less than 1.3 percent
since automatic Cost of Living Adjustments
(COLA) went into effect in 1975, and have
never received less than 5.9 percent over a
three-year period.
The Congressional Budget Office (CBO) issued
the forecast in its March 2009 publication,
A Preliminary Analysis of the President’s
Budget and an Update of CBO’s Budget and
Economic Outlook.
The analysis reads, “No COLAs are currently
projected for [Social Security] from 2010
through 2012; the COLA would amount to less
than 2 percent in all future years.”
“If a nation can be judged on how well it
treats its most vulnerable citizens, I’m
afraid we’re slipping badly behind,” said
Daniel O’Connell, chairman of The Senior
Citizens League.
“Too many of us seniors are being forced to
choose between prescription drugs,
nutritious food, and heat during winter, and
we must do a better job of protecting the
nation’s elderly.”
A recently released survey returned by 808
members of The Senior Citizens League found
that while 56 percent of respondents said
their costs increased more than $119 per
month last year, just one percent said they
received a COLA of $119 or more this year.
Supporters of a zero COLA increase will
likely argue that a zero COLA during
deflationary times is fair.
However, they do not mention that the way
the COLA is calculated fails to accurately
track senior costs, since it is based on the
spending habits of young, urban workers.
As a result, senior costs may go up during
periods of deflation, reducing their buying
power even further.
With 1.2 million supporters, The Senior
Citizens League is one of the nation’s
largest nonpartisan seniors groups.
The Senior Citizens League is a proud
affiliate of The Retired Enlisted
Association. For full press release, please
visit
www.SeniorsLeague.org.
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