News

  • Benefit Bulletin July 2015

    "CBO's updated estimate, based on the latest economic data, continues to show that the Average Wage Index will likely drop due to the COVID-19 pandemic, and millions of Americans will receive lower Social Security benefits unless Congress acts. A medium earner in the affected cohort could lose 0 a year for the rest of their lives. While this is a smaller cut than initially estimated, Congress must still fix this flaw in the benefit formula. These are earned benefits, and already many seniors are just scraping by with the current modest benefits. That is why I will be reintroducing the Social Security COVID-19 Correction and Equity Act to fix the benefit formula and ensure it does not happen again," said Larson. .Open enrollment for Medicare Advantage (MA) plans is now in progress, and before selecting or renewing your current plan, The Senior Citizens League (TSCL) encourages all members and supporters to explore their options diligently. According to the Congressional Budget Office, more than 0 billion will be cut from the program by 2023 due to requirements under the Affordable Care Act (ACA), and many MA plans may be making modifications to benefit packages and provider networks that could affect enrollees significantly. .The 2% COLA will raise the average Social Security benefit (currently ,258) about But the overwhelming majority of Social Security recipients will never see it. Medicare Part B premiums for most people will rise considerably and completely offset the COLA increase, after being held at lower adjusted levels, as required by law, over the past two years when there was no COLA. This provision of law that protects Social Security benefits from reductions is known as the "hold harmless" provision. … Continued

  • Category Issues Cola Articles Page 14

    Still, COLA cuts remain a key proposal of major debt reduction plans. In his budget last year, President Obama proposed changing the way COLAs are calculated by using a more slowly-growing measure of inflation, known as the "chained" CPI. "If our nation is going to correct income inequality, it should start with payroll taxes," Cates says. "Under current law, millionaires pay no Social Security taxes at all on earnings over 7,000, while average workers pay Social Security taxes on every dime they earn," Cates points out. "Cutting the benefits of financially vulnerable seniors and others can't be justified when millionaires are getting a multibillion dollar tax break," Cates asserts. "TSCL urges President Obama NOT to use Social Security COLAs to cut the debt," he adds. .This week, five new cosponsors signed on to the Social Security Fairness Act (H.R. 1795), bringing the total up to one hundred and twenty-eight. The new cosponsors are Reps. Brian Higgins (NY-26), Greg Walden (OR-2), Andre Carson (IN-7), John Barrow (GA-12), and Sean Patrick Maloney (NY-18). If signed into law, H.R. 1795 would repeal the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP) – two federal provisions that unfairly reduce the earned Social Security benefits of millions of teachers, fire fighters, peace officers, and other state or local government employees each year. .Despite tightening the law, Congress did not fix a policy loophole that would be inadvertently triggered with the passage of comprehensive immigration reform legislation. When determining entitlement for insured status, and when calculating the initial retirement benefit, the Social Security Administration (SSA) uses all reported earnings from covered employment in the United States, even if the earnings were from illegal or "unauthorized" work. (2) … Continued

A number of Social Security recipients told their stories to the members of the subcommittee and explained the problems they face, as well as their desires for improvements to the program. .Social Security recipients, on the other hand, wouldn't have received anything during that period because the price inflation, as measured by the government's Consumer Price Index for Workers (CPI-W), fell and was not high enough for a COLA to be payable at all until January of this year. The projected Congressional COLA for 2013 is 1.1% and that would equal an extra ,900 if it takes effect, resulting in an annual salary of 5,900. The Congressional Budget Office (CBO) recently projected that seniors would receive a 1.3% COLA in 201If the CBO is correct, the COLA would only raise average annual Social Security benefits about 9, from ,200 in 2012 to ,389 in 201There's a widespread misconception that Members of Congress don't pay into Social Security. That's not true. They do — but not on all of their salary. .Economists are saying that cost-of-living adjustments (COLAs) overpay seniors and that recipients don't need so much money to maintain their standard of living. Cuts to annual cost-of-living adjustments (COLA) are a key provision of the deficit reduction plans on Capitol Hill, and TSCL is fighting the plans that would cut the benefits of more than 60 million beneficiaries. .We've also reported on an analysis by the Social Security Administration about the effect of the President's directive on the viability of Social Security. That report said in part, the " DI [Disability Insurance] Trust Fund asset reserves would become permanently depleted in about the middle of calendar year 2021, with no ability to pay DI benefits thereafter. We estimate that OASI[Old Age and Survivors' Insurance] Trust Fund reserves would become permanently depleted by the middle of calendar year 2023, with no ability to pay OASI benefits thereafter." .Other countries, such as Britain, take a more head-on approach: a national body does a cost-benefit analysis regarding the price at which a new drug is worth being made available to its citizens. Health authorities then use that information to negotiate with a drug maker on price and to develop a national reimbursement plan. .Is his condition found on the Social Security Administration's list of disabling conditions? This is a list of medical conditions that the Social Security Administration considers so severe that it prevents a person from completing substantial gainful activity. .If our annual COLA works as intended, this should not happen. .What would you say are the three most important decisions to maximize Social Security? .In 2008, an audit by the Social Security Administration's (SSA) Office of Inspector General found that spouses did not always receive the higher retirement benefits due them. Although 18,768 spouses were identified as eligible for higher retirement benefits in that audit and the SSA developed a notification letter, the agency took no further action to notify beneficiaries – citing "limited resources." As a result, these spouses never received the higher retirement benefits for which they were eligible.