How to Keep Social Security off the GOP Chopping Block

Published in Woonsocket Call on April 4, 2015

One of the first political skirmishes to protect the nation’s Social Security program, 589 days before next year’s Presidential election, took place on March 24th in the U.S. Senate during budget debate. Leading the charge, Rhode Island Senator Sheldon Whitehouse called up Senator Wyden (D-OR)’s budget amendment, requesting a Senate point of order against legislation to cut benefits, raise the retirement age, or privatize Social Security.

During the debate, “Social Security benefits are a solemn promise that our seniors have earned over a lifetime of work,” said Whitehouse, a founding member of the Senate’s Defend Social Security Caucus. “Sadly, Republicans have made it their mission for decades to dismantle that promise, attempting to turn it over to Wall Street and cut benefits through misguided ideas like the so-called ‘chained-CPI’,” he charges, noting that the Democratic sponsored amendment protects Social Security from right-wing attacks and ensure that retirees can count on their earned retirement benefits.

Republican Senator Enzi from Wyoming raised a point of order, calling Wyden’s amendment non germane to the budget resolution being debated. With the Democrats rallying 51 Senators to vote yea, 60 votes were required to wave Enzi’s point of order.

Although his attempts to protect Social Security in the Senate budget failed, Richard Davidson, Whitehouse’s Rhode Island Press Secretary, tells this columnist that the Senator plans to continue his efforts to keep Social Security off the GOP budget chopping block and from being privatized by supporting legislation like the Keeping Our Social Security Promises Act, legislation that would raise the income cap on the payroll tax to ensure the program’s solvency.

Davidson also states that the Social Security trust funds are projected to be fully solvent though 2033, and there’s no immediate funding crisis. But, in the longer run, Whitehouse believes the program must be bolstered by applying the payroll tax, which currently only applies to income up to $118,500, to higher levels of income, he says.

Protecting SSDI

One month before the Senate Budget debate, the GOP-controlled Senate Budget Committee put a spotlight at a hearing on the impending insolvency of the nation’s Social Security Disability Trust Fund (SSDI). The federal government has predicted that SSDI fund reserves will run low by the end of 2016, at which point millions of disabled beneficiaries could see up to a twenty percent cut in benefits.

At the Senate hearing, entitled “The coming crisis: Social Security Disability Trust Fund Insolvency,” Democrats called for an easy quick fix to the problem, specifically the shifting of a small percentage of the Social Security payroll tax from the retirement trust fund to the disability trust fund. No big deal, they say, because these transfers have occurred 11 times in the past with bipartisan support without political bickering. But, from this hearing it seemed clear that GOP Senators, who control the Senate, now see things differently and are threatening to block the infusion of funds to SSDI.

Approximately 10.2 million Americans received SSDI benefits in 2013, including roughly 42,000 Rhode Islanders. In order to qualify, beneficiaries are required to have worked in a job covered by Social Security, and must have been unable to work for a year or more due to a disability.

A February 9 posting on the Plum Line blog, penned by Greg Sargent for the Washington Post web site, takes a look a look at this SSDI entitlement debate.
In his opinion blog, Sargent says that GOP lawmakers claim that a “restricting a fund transfer is all about forcing a necessary discussion on how to improve Social Security’s long term finances, rather than merely “kicking the can down the road.” On the other hand, the Washington Post blogger believes Democrats see the Republicans as “exaggerating the sense of crisis to realize one of two political goals. Either they want to force immediate, and unnecessary, cuts – or they want to hold the disability fund hostage, in order to have another run at cuts to the broader program [Social Security].”

Gathering the Troops

At a March 23rd panel discussion hosted by the Providence-based Headquarters of Community Action Partnership , Whitehouse and Congressman Jim Langevin with Rhode Island Senator Donna Nesselbush, a disability attorney, along with SSDI recipients, disability groups, and the Social Security Administration, came to discuss the solvency of SSDI and its impact on the Ocean State. The lawmakers called for shifting Social Security payroll taxes to financially shore up the ailing SSDI program. Both lawmakers also supported a long-term solution, fully funding the federal retirement and disability programs by lifting the cap on the amount of income that is subject to the payroll taxes that fund the program.

“Right now, a millionaire hedge-fund manager pays the same amount of taxes into the Social Security system as someone who makes $118,500,” said Whitehouse. He called for “wealthiest Americans to pay a fair share into the program, so that it’s not funded disproportionately on the backs of middle-class workers.”

Congressman Langevin stressed “SSDI is not only a critical safety-net for disabled workers, their children and spouses, it is also a promise we make to everyone who pays into the Social Security trust fund that they won’t be impoverished if they are left with a debilitating condition or disability.”
Although Whitehouse’s efforts to protect the nation’s Social Security and Disability programs were derailed in the Senate Budget debate because of a GOP procedural call, it’s only the first of many political skirmishes to come. The upcoming 2016 Presidential elections will firmly put this entitlement issue on the nation’s radar screen, hopefully to address once and for all.

But, here’s my message to Whitehouse: Even if you lose a skirmish, or battle, you can always win the war. Keep pushing.

Herb Weiss, LRI ’12, is a Pawtucket-based writer covering aging, health care and medical issues. He can be reached at hweissri@aol.com.

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AARP’s President Romasco Great Rhode Island Adventure

Published in Pawtucket Times, August 23, 2013

AARP’s top volunteer, President Robert G. Romasco, sees a key role for AARP in supporting the nation’s families, which is why he made a quick one-day trip to the Ocean State last week to help kick off the Back to School Celebration of RI, visiting three of the eleven sites throughout the state. Romasco came to endorse AARP Rhode Island’s strong involvement with this ongoing learning initiative. The state affiliate is a long-time Celebration Sponsor and Deborah Miller, Associate Director of Community Outreach, sits on the School Celebration’s Board of Directors.

Programs like Back to School Celebration of RI are important for AARP to strongly support, says Romasco, because of the changing demographics of its membership. Once viewed as an organization representing those in their mid-sixties and older, now aging baby boomers 50 plus make up one of the largest membership constituencies, over 100 million Americans.

AARP does not just serve the needs of these members, but their families as well, their elder parents, adult children and even grandchildren. AARP’s mission statement spotlights its focus, “issues that matter most to families such as healthcare, employment and income security, retirement planning, affordable utilities and protection from financial abuse.”

Years ago, a pair of shoes was seen as a status symbol for young students returning to school. Today it’s a backpack, says Romasco, who says that this annual community initiative gets children excited about going back to school after the long summer recess. “It’s also about helping families to prepare their children to have a successful school year,” he says.

The Back to School Celebration, in its ninth year, began with a modest effort to support children in struggling families. It all started with 300 backpacks. It has grown dramatically to 14,000 backpacks distributed this year, with local companies donating the school supplies for the initiative. Any parent will tell you that school supply costs add up, especially in large families. This assistance keeps back-to-school costs from sinking a tight family budget every fall.

A Jam Packed Schedule

On Saturday, August 17, after opening ceremonies at the William D’Abate School in Providence, Romasco traveled to the West End Community Center in the city to pass out backpacks, working side by side with AARP State Director Kathleen Connell and Phil Zarlengo of Jamestown, a past chairman of the AARP national board. From there, Romasco drove to Newport to observe backpack distribution at the East Bay Community
Action Program. While there, he toured the new facility, which provides community-based health services utilizing an innovative patient-centered approach to medical care.

Said Romasco at the opening ceremonies, “When people want to see how America can work, I say, ‘Let them come to Rhode Island … and see how a community can work together for the benefit of all families and the children who are our future.’”

Romasco concluded his visit with a luncheon in Newport with city officials and community leaders that included a presentation by Newport Director of Public Services William Riccio, who discussed the Broadway Streetscape redesign. AARP Rhode Island, as part of its statewide “complete streets” advocacy (as reported in my May 19, 2012 Commentary), supported the project, which will make Broadway more pedestrian and bike friendly while adding features embraced by retailers and business on the thoroughfare.

Breakfast at the Diner

Around 8:00 a.m., at Pawtucket’s historic Modern Diner on East Avenue, Romasco, 65, sat down with this columnist to explain the issues on the policy radar screen of the nation’s largest advocacy group.

We don’t oftentimes see powerful national leaders who oversee major aging organizations come to the Ocean State. But we did last week. As AARP President, Romasco’s 22-member volunteer Board of Directors approves all policies, programs, activities, and services and oversees a $1.5 billion operational budget for the Association’s 37 million members. The huge nonprofit, nonpartisan organization employs 2,400 employees, many based in every state and in the nation’s territories.

While many of AARP’s volunteer Board Members come up thru the rank and file in local State Chapters, this was not the case with Romasco. In 2005, at age 57, an old friend, who met him 35 years earlier when he consulted for AARP, urged him to respond to an open call for consideration for the top AARP leadership position. When the dust settled he was among “seven lucky individuals” chosen from a pool of 400 applicants.

According to Romasco, AARP brings in seven new board members every two years. “We look at a person’s diversity, not just in ethnicity and where a person lives, but what skills and points of views they bring,” he says, stressing that this creates a “good mix” on the group.

Many would consider Romasco’s appointment a very good choice. The retired businessman is a graduate from Harvard Business School with a Master of Business Administration, who previously received his Bachelor of Arts degree from Brandeis University.
During his 35 year working career, Romasco has held senior level positions at a number of prestigious national companies, including QVC, Inc., CIGNA, Inc. and J.C. Penny. Over the years at these companies, he has honed his skills in marketing, branding and organizational change. However, during his long career he did take a one-year sabbatical from his full-time job. “I actually got to see my kids go to school. I got to see them come home from the bus. ”

His presidency at the helm of AARP is very time consuming, “a full-time activity,” he quips. When responding to people who ask him if he is retired, Romasco nods, stating “I just don’t get paid anymore.”

Before becoming President, Romasco served as AARP board secretary/treasurer, and chaired the Audit and Finance Committee. He is a former member of the Board of Directors, of AARP’s Andrus Foundation.

Romasco personally gets it, that receiving a Social Security check can often times mean the difference between eating or not eating. With his mother bringing home a meager wage earned as a part-time seamstress, her survivor benefit check literally put food on the table for the young child and his sister.

His speaking schedule is jam packed, as he travels around the nation sharing his personal experiences as to the importance of Social Security impact on a family’s budget. These visits are used to get this message out: “Social Security is the only lifetime, inflation-protected guaranteed source of retirement income that most Americans will have.”

As the Congressional debate heats on Capitol Hill, as to modifying Social Security’s existing cost of living formula thru a chained CPI, Romasco warns that it’s not a minor tweak but one that can substantially reduce the amount of a retiree, a disabled person or veteran’s benefit check. According to AARP calculations, a 65 year old retiree would lose $662 over five years of retirement. After 20 years of Social Security, the benefit cut would amount to $9,139.

A chained CPI is just “bad policy, a bad idea” says, Romasco, one of the nation’s most visible aging advocates. “It is an attempt by Congress to balance the federal deficit on the back of the nation’s seniors,” he charges.

During my breakfast, Romasco tells me that AARP has unleashed one of its largest outreach efforts in its history. Its “You’ve Earned a Say,” initiative educates Americans about the policy debates on Social Security and provides them an opportunity to voice their views and concerns on the ongoing retirement policy debates in Congress. Rhode Island AARP oversees this initiative in the Ocean State (as detailed in my Commentary published Oct. 26, 2012),

Just last week, he says that petitions from 1.5 million people who voiced their opposition to the chained CPI calculations for annual COLA adjustments on 10,000 pages in 15 large boxes were carried to the House Ways and Means Committee.

Romasco says that AARP, through its successful efforts to collect these petitions from 4,000 town meetings held nationally, has enabled citizens to have an opportunity to express their opinions to their elected officials.

He smiles, noting that Congress has certainly heard from the nation’s aging baby boomer and seniors. “Congress certainly cannot ignore us with those delivered petitions.”

Herb Weiss, LRI ’12, is a Pawtucket-based writer covering aging, health care and medical issues. He can be reached at hweissri@aol.com.

Susan Sweet Takes the Reins of AARP’s Community Educational Initiative

Published in Pawtucket Times, July 11, 2013 

            Accepting the challenge offered by organizers of Rhode Island AARP’s “You’ve Earned a Say”, veteran advocate and organizer, Susan L. Sweet, has come out of semi-retirement, stepping to the plate to coordinate a series of “community conversations”  to continue efforts of promoting dialogue throughout the OceanState on the future of Social Security and Medicare.

             After years of paying into Medicare and Social Security, AARP, a Washington, D.C.-based group representing 40 million Americans, believes that age 50 plus aging baby boomers and older persons deserve a voice in the Inside the Beltway debates that impacts their future retirement years.  “You’ve Earned a Say” is a AARP-led national conversation committed to providing people with critical information about the domestic policy proposals being debated in Congress — simply put without the political jargon and spin.

             Regional events to be held in Warwick, Pawtucket and elsewhere – free and open to all — will be scheduled throughout the summer into the fall as Congress and  President Barack Obama begin to weigh in on policy changes for these critical domestic programs.

             “Susan has a remarkable knack for encouraging people to become actively engaged in matters that deserve public attention and involvement,” said AARP State Director Kathleen Connell. “We are fortunate that she has agreed to take this on. She will bring great energy to AARP’s ‘You’ve Earned a Say’ outreach and engagement efforts. The fate of Social Security and Medicare is important to all Rhode Islanders and we hope many will take part in our forums. Working with our staff and other AARP volunteers, Susan will be a tremendous asset. She is a force of nature.”   After seeing her in action for over 18 years this columnist agrees.

             A veteran of the 1960s civil rights movement and the War on Poverty, Sweet joined the state Department of Community Affairs (DCA) in 1972, where she founded and led numerous Rhode Island Division of Women’s programs.  She worked with the General Assembly to secure the first state funding for Domestic Violence Shelters.  While at the DCA, she also wrote a grant, funded by federal dollars, to establish community health centers throughout the state.

             In the late ‘80s and ‘90s, Sweet was Associate Director of the R. I. Department of Elderly Affairs (DEA), creating and developing a number of award winning programs, including the RI Pharmaceutical Assistance to the Elderly Program, popularly known as RIPAE.  She initiated a first in the nation statewide Elder Housing Security program and various legislative and programmatic initiatives to assist elders in the state.

             Sweet, a Rumford resident, earned the monikor as the mother of RIPAE by initiating, planning, organizing, managing and finally directing the state program that would ultimately assist 32,000 Rhode Island  limited income seniors with state co-payment assistance for prescription drugs. After leaving the DEA, three attempts were made by sitting governors (both Independent and Republican) to eliminate the program and the advocate led all three successful efforts to restore RIPAE funding in the state budget.

             After retiring as DEA’s Associate Director in 2000, Sweet has been a consultant and lobbyist on Smith Hill for nonprofit agencies and an advocate for vulnerable populations and issues such as immigrants, domestic violence, homeless and seniors. Her clients have included the Senior Centers Directors Association, the Alliance for Better Long Term Care, International Institute, the Coalition Against Domestic Violence and others.

             On a personal note, Sweet, 72, cares for five adopted cats, all abandoned or abused, putters in her large backyard garden, spends time with two children and two grandchildren.  Being an expert on Roman history she reads many tomes on that era, and on world archeology and history.

Social Security on the Chopping Block

               Democratic President Obama and a Democrat-controlled Senate and a GOP House of Representatives are trying to reach a budget deal in the coming months. President Obama has proposed a change that would slash $127 billion from Social Security benefits over the next ten years, hurting many older beneficiaries who are already living on very tight budgets stretched far to thin by costly prescriptions, rising utilities, and increased health care costs. AARP and other aging groups are pushing hard against these cuts, mobilizing their troops to oppose. 

             Social Security is a self-financed program, not a piggy bank for deficit reduction, noting that aging baby boomers and seniors have paid into this pension program their entire working lives.  According to AARP polls, older Americans expect their elected representatives in Washington to fiscally secure Social Security for future generations and keep the promise Congress made 78 years ago: that this retirement program would provide a financial safety network in their later years.

             According to Sweet, the proposed chained CPI is a flawed policy that will hit Social Security beneficiaries in their pocketbook. Each year the Social Security Administration (SSA) makes the determination, based on market prices, whether to adjust the Social Security payment to beneficiaries and, if so, by how much.  The chained CPI is a formula that assumes that people will simply buy cheaper products.  “But that is not the case for seniors, whose greatest expenses are health care, utilities and other costs that can’t often be replaced,” So, the chained CPI is just a term that means that the average senior will lose more than $2,000 in the next 10 years and even more after that.  It also means that people reaching retirement age and/or planning for retirement will have even more of a reduction.

             Furthermore, Sweet finds it extremely disappointing that a Democrat President would offer, as an opening gambit in the budget process, a reduction in Social Security benefits by using a new and inappropriate method for computing Cost Of Living Adjustments (COLAs).  In fact, Social Security, a program that pays for itself and has never run a deficit, should not be used to offset deficits in other programs. We should be talking about how to strengthen the program, not reducing it, she states.

 State Pension Changes Hits Retirees, Too

             But, with Social Security COLA cuts looming if Congress takes legislative action to endorse chained CPIs, aging baby boomers in the OceanState who will shortly retire or those already receiving their municipal or state pension checks will see less retirement income because of actions of the Rhode Island General Assembly.

                 “Any additional loss of retirement income is certainly a concern for public employees who, as a result of the 2011 slashes in their promised retirement income,” said AARP’s Connell. “Lawmakers need to understand that there are earned benefits. People plan their retirement based on what they are told they can count on – whether it is a public or private pension, or Social Security. As we have said for the past two years, Congress and the President should not address the deficit by pursuing harmful cuts to Social Security and Medicare.” 

             Sweet agrees stating that “Rhode Island was at the very front of the attack on older folks with an extraordinary coup which stripped public service retirees and workers of hard earned compensation for their work. They called it “pension reform”, but that is not what it was.  Everyone knows that it is not fair to change the rules in the middle of the game and certainly not after the game is over.  But that is what is happening around the country, in private and public employment.”

             Social Security and other pensions are not “entitlement programs” but more like insurance programs that you pay into with the promise and expectation of a certain coverage, notes Sweet. The aging advocate asks: “Should the insurance company be allowed to change the benefits upon payout? Should government (state or federal) cut benefits to retirees absent the most pressing of circumstances?”

             But, certainly in the case of Social Security, there is no emergency, but rather a timely need to insure that the program can continue to fulfill its mission, she says.

             Robert A. Walsh, Jr., Executive Director of NEA, National Education Association Rhode Island, representing 12,000 members in education and in city and state government, refers to the recalculation of COLAs by using chained CPIs as “voodoo economics.”  While supporters of this recalculation policy note it reins in Social Security costs, they should at least be honest about the fact that it personally hits the retiree financially, right in their checks, he says.  “If you’re going to cut people’s COLAs, just be honest about it,” he says.

             Many of Walsh’s union members only receive their city or state pension as they are not eligible for Social Security benefits. People retired with certain expectations [as to what retirement income they had] and to make pension changes after they retire is patently unfair, says Walsh, noting they had no opportunity to plan for the decreased income.

             Throughout the nation there is a growing movement of aging baby boomers and seniors, fueled by AARP’s educational efforts, who tell Congress to simply  “Leave Social Security Alone”.  Strengthen it for future generations, they say.

             Sweet and millions of others tell Washington politicians that “Social Security is not a cookie jar to fund other programs.”   Sweet says you can make this known to Rhode Island’s Congressional Delegation, Senators Reed and Whitehouse, Representatives Cicciline and Langevin, by attending the upcoming “community conversations.”  Support their position opposing the change in the COLA and urge them to support Social Security by leaving it out of any budget deal, she urges. 

             Herb Weiss LRI ’12 is a Pawtucket-based writer who covers health care, aging and medical issues.  He can be reached at hweissri@aol.com

Critics of Chained CPI Call It a “Flawed Policy”

 Published in the Pawtucket Times, July 5, 2013

            With President Barack Obama’s fiscal blueprint unveiled almost three months ago, on April 10, 2013, that included a chained consumer price index (CPI) for the purpose of calculating Social Security cost-of-living adjustments (COLAs), Rhode Island aging advocates go on the offensive opposing the suggested way as to how the federal government would calculate inflation.

             In June 12, 2013, Rhode Island AARP State Director, Kathleen S. Connell, a former secretary of state and one-time teacher, and State President Alan Neville, of Cumberland, along with AARP staff and volunteers from every other state in the nation, traveled to Inside the Beltway to Capitol Hill, on June 12, 2013, to urge Congress to just say “No” to a tying a chained CPI to Social Security.

             Continuing to protest, early this week Connell, Senator Whitehouse and Congressman Langevin and Cicilline, joined over 150 people who voiced strong concerns over Congress’s consideration of a chained CPI.  The Rhode Island Alliance of Retired Americans, the organizer of Tuesday’s protest, called it a “flawed policy,” charged that “switching to a chained CPI would compound benefit reductions dramatically over time, resulting in an annual benefit cuts.” 

            AARP Rhode Island is also planning to host “You’ve Earned a Say” discussions at seniors centers across the state this summer and into the fall to get its membership to rally against changing how Social Security cost of living adjustments are calculated.

 

Critics Take Aim at Chained CPIs

             President Obama’s push in his proposed budget request to rein in Social Security costs (a concession to GOP leadership), through the use of the chained CPI, pushed liberal Democratic lawmakers, including Rep. David Cicilline, representing Rhode Island’s 1st Congressional District and Senator Sheldon Whitehouse, to strongly oppose President Obama or any Congressional efforts to put Social Security on the chopping block to lower the nation’s federal deficit, through changing the way COLAs are calculated.

            Rather than tinkering with the CPI linked to Social Security to rein in the nation’s huge federal deficient, Rep. Cicilline called for reforming the nation’s tax code by ending subsidies for “Big Oil,” along with “making responsible target spending cuts,” to slash the nation’s huge federal deficit

 

            Referring to the Social Security’s 2012 Annual Report in April (see my June 1, 2012 Commentary in the Pawtucket Times) , Sen. Whitehouse stated that Social Security is fully solvent for the next 20 years and has not contributed to the nation’s budget deficit and has no place in the debate over federal spending. 

             Senator Whitehouse called it “a [Social Security] benefit cut disguised behind technical jargon.”  The Senator and other critics argue that the current CPI shortchanges older persons by placing too much emphasis on products that these individuals are less likely to buy, like “smart phones” and “computers.”  He noted that in 2010 and 2011, Social Security beneficiaries did not receive a COLA, even though prices for food and beverages, medical care, gasoline and fuel oil increased.

             According to the Washington, D.C.-based, National Committee to Preserve Social Security and Medicare (NCPSSM), the Obama Administration sees this [chained CPI] switch as just “a technical adjustment.” Aging group warn that using the chained CPI will substantially reduce the Social Security benefits of current and future beneficiaries.  “If it is adopted, a typical 65 year-old would see an immediate decrease of about $130 per year in Social Security benefits.  At age 95, the same senior would face a 9.2 percent reduction—almost $1,400 per year,” notes NCPSSM.

             While all beneficiaries will feel the impact of this change, its effect will be greatest on those who draw benefits at earlier ages (e.g., military retirees, disabled veterans and workers) and those who live the longest, says NCPSSM, especially “women who have outlived their other sources of income, have depleted their assets, and rely on Social Security as their only lifeline to financial stability.”

 What’s the Impact???

             Washington-DC-based, AARP, representing 40 million members, has rolled out an educational campaign, to put the face who loses most if changes are made in how COLAs are calculated. 

 

              Fact Sheets, placed on AARP’s heavily traveled website (http://www.aarp.org/politics-society/advocacy/info-04-2012/youve-earned-a-say.html), tells how a federal policy shift would impact specific demographic groups in their pocketbook.

             Retired women can least afford using the chained CPI calculation because they earn less on average than men (that is $4,000), are more likely to have a part-time job and have gaps in their employment due to leaving the workforce to take care of their children.  With women living longer the chained CPI would slash their benefits more with every year they live.  Older women also rely on their Social Security Pension checks because they are less likely to have other sources of retirement income, this check even keeping 38 percent of them out of poverty compared to 32 percent of older men, the says the AARP fact sheets.

             AARP’s fact sheets, also details the impact on older disabled Americans, noting that 37 percent are dependent on Social Security benefits for nearly all their family income, that is around $13,560 annually.  Many begin getting Social Security checks at a young age.  For instance, a 35-year-old disabled worker who receives average disability benefits would see his or her benefits reduced each year by $886 at 65 and $1,301 at 80.   Finally, Social Security keeps about 40 percent of people with disabilities age 18 and over and their families out of poverty.  Cutbacks in benefits due to tying the chained CPI to the Social Security program would force the persons already living on a very tight budget impacted by rising drug costs, increased utilities and health care expenses to cut back on vital needs.

             Finally, one of AARP’s fact sheets charge that older veterans would be financially slammed, sort of a double whammy.  With almost 1.5 million veterans living below the poverty level, each dollar cut, like older person’s who are disabled, will get hit hard in their pocket book as the years roll by.  Because a chained CPI would cut both Social Security and Veterans’ benefits, this group gets the budget ax thrown at them twice. “A veteran who’s 65 today would have veterans benefits reduced annually by $1,029 and Social Security benefits by $1,422 at 95, when benefits are needed the most,” states the fact sheet.

 Congressional Fight Looming

             Rhode Island’s Senator’s Jack Reed and Sheldon Whitehouse have signed on as co-sponsors of SR 15, with over a dozen Senators, a Resolution Rejecting the chained CPI expressing “the sense of Congress that the chained CPI should not be used to calculate cost of living adjustments for Social Security and Veterans benefits.”

             Meanwhile, in the House of Representatives, a resolution, HR 34, was introduced by Rep. Cicilline, cosponsored by Rep. James Langevin along with 111 other Democrats, also opposing President Obama and GOP attempts to rein in the Social Security budget through the use of a chained CPI calculation.

             With nonbinding resolutions expressing opposition to the use of a chained CPI index now introduced in both chambers of Congress, union and aging groups are urging rallying support for passage.

            AARP’s Kathleen S. Connell and her colleagues around the nation are gearing up to send a message loud and clear, once and for all to Congress.  Simply put, Connell says:  “Chained CPI is not only harmful and illogical; it is also out-of-place in the discussion of deficit reduction.  As a self-financed program providing earned benefits, Social Security has not caused the deficit—and it should not be turned into an ATM for politicians trying to address it.  We deserve a separate national conversation about how to protect Social Security for today’s seniors and responsibly strengthen it for our children and grandchildren.”

            Congress might well choose to tread lightly on giving the thumbs up to using a chained CPI in calculating Social Security Colas. The anticipated fiscal impact (detailed by AARP and aging group critics, along with the Rhode Island Congressional delegation) resulting from this federal policy change will hit the nation’s elderly right where it hurts, the most, in their wallets.  Increased bipartisan efforts can find better solutions to trimming the nation’s huge federal deficit and improving the fiscal viability of the nation’s Social Security Program.

             Herb Weiss, LRI ’12, is a Pawtucket-based freelance writer covering aging, health care and medical issues.  He can be reached at hweissri@aol.com