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Congressional Response: Representative Gene Green (D-29th, TX) Responds to Your COLA Petition
Thank you for contacting me to express your concern about Social Security, in particular, the cost-of-living adjustment (COLA). I appreciate your concerns that COLAs affecting seniors may be inadequate and in the future may be reduced.
Social Security COLAs are based on changes in the Consumer Price Index (CPI-W), which measures price increases from year to year. Because the CPI-W is based on goods brought by current workers, COLAs may not accurately reflect the inflation experience of the elderly. An experimental elderly inflation measure has shown a slightly higher rate of inflation than the CPI-W. If this is the case, Social Security checks are buying less each year. This puts a severe financial strain on seniors who are on a fixed income and rely on Social Security COLAs.
Some proponents of reforming the Social Security program have advocated reducing or changing the COLA. I strongly oppose this and instead support legislation which would create a separate senior's CPI, based on expenditures for consumption which are typical for individuals in the United States who are 62 years of age or older. Please be assured that I will do all I can to see that Social Security is protected and that seniors have the resources they need.
Sincerely,
Gene Green
September 2005
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