Senior Citizens League Pushes Bill Giving Seniors
$415 Increase in Social Security for 2010
House bill proposes a 3% pay hike for seniors – the
average COLA increase over last 10 years
Oct. 16, 2009 – Despite strong Congressional
support and the backing of President Obama for a $250 payment to senior
citizens in 2010 to compensate for the lack of an increase in Social
Security, The Senior Citizens League is not giving up on its support for
a House bill that would give the average beneficiary an additional
$415.20 in Social Security payments, a boost of $34.60 per month in
2010.
The Senior Citizens League (TSCL) says the one time
payment of $250 would “make-up just a tiny fraction of the amount
seniors will lose throughout their retirement” due to the lack of a Cost
of Living Adjustment (COLA) for 2010 that was announced officially
Thursday by the Social Security Administration.
A senior retiring in 2009 with average benefits
would lose $10,134 over the course of a 20-year retirement, due to the
loss of the compounding effect of an average annual benefit increase of
three percent, according to a recent analysis by The Senior Citizens
League (TSCL).
Three percent is the average COLA increase over the
last ten years for those receiving Social Security benefits.
And, it is a 3% increase for 2010 that TSCL is
pushing for by backing the Emergency COLA Bill introduced by Congressman
Walter Jones (R-NC). Rep. Walter Jones (R-NC) introduced
H.R.3557 on September 17.
“As gas prices remain elevated and seniors struggle
to pay their mounting bills, Congress needs to reign in unnecessary
spending and instead focus on actual needs, like ensuring that our
seniors are granted the COLA they need to help make ends meet,” Jones
said when he presented the bill.
“Because Social Security benefits are calculated
using faulty methods that fail to account for the true cost of
inflation, COLA’s have been less than actual inflation and seniors’
purchasing power has been dramatically eroded as a result. This
legislation would help alleviate this problem.”
Jones, a libertarian-minded Republican who backed
Ron Paul in the 2008 presidential race, has sided with the Democrats on
economic issues such as raising the minimum wage.
"Although President Obama's call for a one-time
payment of $250 will help seniors, it is not nearly enough to compensate
for the rising costs seniors have been enduring for years,” says Shannon
Benton, TSCL Executive Director.
“Today, a senior can buy just 80 percent of what
they could have afforded at the beginning of the decade - and $250 does
not address that terrible trend in an effective manner."
How TSCL Sees the Problem
● The Congressional Budget Office (CBO) also
forecasts a zero COLA for 2011. If there is no COLA for both years, a
senior retiring in 2009 with average benefits would lose $20,144.
● Although the COLA is intended to help seniors
keep up with inflation, a recent study by TSCL that analyzed 20 key
expenditures found that people 65 and over have lost 20 percent of their
buying power since 2000.
● Common senior expenses have soared since the
beginning of the decade, such as Medicare Part B premiums (up 112
percent), heating oil (up 96 percent), and a dozen eggs (up 99 percent).
● Almost 70 percent of beneficiaries depend on
Social Security for 50 percent or more of their income. Social Security
is the sole source of income for 15 percent of beneficiaries.
● The bill would give the average beneficiary an
additional $415.20 in Social Security payments in 2010, a boost of
$34.60 per month.
● More importantly, the bill prevents seniors
from losing the compounding effect of a COLA increase, which could
result in thousands of dollars more throughout retirement for millions
of seniors.
TSCL says it became the first national group to
call for an Emergency COLA for 2010, when they did so in June.
Since automatic Cost of Living Adjustments went
into effect in 1975, seniors have never before failed to get an
increase, according to the TSCL. Almost 70 percent of beneficiaries
depend on Social Security for 50 percent or more of their income. Social
Security is the sole source of income for 15 percent of beneficiaries.
Several bills have been introduced in Congress to
help seniors by offsetting their COLA loss and, even before the
President came out for the $250 payment, a bill with that same amount
was already getting attention.
The Emergency Senior Citizens Relief Act, has a
sponsor in the Senate, Sen. Bernie Sanders (I-Vt.), and one in the
House, Rep. Peter DeFazio (D-Ore.).
Their bill, too, is rather novel and simple – it
calls for each Social Security recipient to receive a one-time payment
in 2010 of $250.00.
To pay for the benefits boost, the legislation
Sanders introduced in the Senate and DeFazio offered in the House of
Representatives would apply the Social Security payroll tax on household
incomes above $250,000 and below $359,000 in 2010.
President Obama proposes paying for the payment
with economic stimulus funds.
Over 50 million senior citizens and disabled
younger Americans receive Social Security benefits. The COLA for this
year was a 5.8 percent increase, the largest since 1982.
Background information on TSCL
With 1.2 million supporters, The Senior Citizens
League claims to be one of the nation’s largest nonpartisan seniors
groups. Its mission is to promote and assist members and supporters, to
educate and alert senior citizens about their rights and freedoms as
U.S. Citizens, and to protect and defend the benefits senior citizens
have earned and paid for. The Senior Citizens League is a “proud
affiliate” of The Retired Enlisted Association. Visit
www.SeniorsLeague.org for more information.
Keep up with the latest news for senior citizens, baby
boomers
Oct. 16, 2009 – Despite strong Congressional
support and the backing of President Obama for a $250 payment to senior
citizens in 2010 to compensate for the lack of an increase in Social
Security, The Senior Citizens League is not giving up on its support for
a House bill that would give the average beneficiary an additional
$415.20 in Social Security payments, a boost of $34.60 per month in
2010.
Action stops insurance increase for about 27% of
senior citizens, others protected already; Seniors won’t see COLA for
2010
ones, a libertarian-minded Republican who backed
Ron Paul in the 2008 presidential race, has sided with the Democrats on
economic issues such as raising the minimum wage. 
President Obama proposes paying for the payment
with economic stimulus funds.