Congressional Response: Representative Eliot L. Engel (D-17th, NY) Responds to Your COLA Petition

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Congressional Response: Representative Eliot L. Engel (D-17th, NY) Responds to Your COLA Petition

Knowing of your interest in the Social Security cost of living adjustment (COLA), I wanted to take a moment to share my views with you on this important issue.

I am a proud cosponsor of legislation to create a seniors only COLA – HR 2262. As you may know, Social Security payments are automatically adjusted each year to keep pace with inflation. The formula used to adjust payments is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The increase this year in the Social Security COLA was only 2.7%.

I believe that this formula does not accurately reflect the cost of living of a senior citizen. HR 2262 directs the Department of Labor to prepare and publish a monthly Consumer Price Index (CPI) for elderly consumers that indicates changes in expenditures typical for individuals 62 years of age or older. Therefore, cost of living adjustments for Social Security and Medicare benefits will be based on a new "seniors-only" CPI formula. This new formula will adjust Social Security COLAs in an effort to offset inflationary costs specifically faced by seniors. This will result in a more accurate cost of living adjustment for seniors. Please know that ensuring adequate Social Security payments is of the utmost importance to me and I will continue to support legislation to improve the quality of life of seniors in New York and across the country.

Once again, thank you for considering my thoughts.

November 2004