The CPI-E – A Better Option for Calculating Social Security COLAs
President Obama’s 2014 budget proposal includes a plan to change the way Social Security cost-of-living adjustments, or COLAs, are calculated by adopting the “chained” consumer price index (CPI). The National Committee has been vocal in its opposition to the chained CPI because it does not accurately measure the purchasing patterns of our elderly population. We urge the adoption of a CPI for the elderly, or CPI-E, as a more accurate means of calculating Social Security COLAs. An in-depth examination of the CPI-E follows.
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Some in Washington claim the Chained CPI is a better way of calculating the COLA for seniors, well, it’s not. The Chained CPI is a benefit cut to Social Security and will affect seniors, veterans, and the disabled. A better option to calculate the COLA would be to use the CPI-E.
The National Committee believes accuracy must be the goal of changing the current consumer price index. The CPI-E represents the best alternative for correcting problems with the CPI-W for America’s seniors. In contrast, the proposed chained CPI does not account for the unique spending patterns of the elderly and would lead to a cut to the already inadequate COLA. In order to implement the CPI-E, the BLS will need sufficient funding to conduct the research and expand the sampling needed to enable the index to move from experimental to official. When the CPI-E becomes official it should, at last, finally represent the most accurate measure of the inflation affecting our nation’s seniors.
via NCPSSM.
Please take less than 10 seconds to sign our petition that asks Congress to pass legislation that would require the CPI-E to be used to calculate annual Social Security COLAs.
At the moment, some in Washington are proposing the Chained CPI which is a benefit cut to Social Security.
Sign the petition by clicking the graphic above or the link below:
http://www.thetruthnow.org/Petition
But they also call for switching COLAs to the Consumer Price Index for the Elderly or CPI-E, designed by the U.S. Bureau of Labor Statistics. The CPI-E would boost Social Security payments without worsening the system’s deficit.
via The Social Security Fix That Could Help the Poorest Retirees.
Related Reading:
Why Seniors Need a CPI-E.
But if the CPI-E determined the Social Security COLA, the expected average COLA would increase about 0.2 percentage points per year.
Some in Washington have proposed the Chained CPI, which would be a Social Security benefit cut to seniors, veterans, and the disabled. It is important to use a more accurate way of calculating the COLA formula, which is the CPI-E.
We know the CHAINED CPI would cut Social Security benefits to seniors.
The CPI-E is a better formula to measure inflation. Here’s some quick facts about it!
The current price index (CPI-W) does not take these critical differences in the elderly population into consideration. The chained CPI doubles-down on that flaw. Even worse, the proposed chained CPI will cut COLAs immediately for current and future retirees, veterans, the poor and people with disabilities.
via Entitled to Know.
“Chained CPI” is a phrase floating around the Social Security debate that is important to current and future Social Security beneficiaries. Chained CPI would change the way cost of living adjustments (COLA) for Social Security and other other government programs are calculated. The COLA increase that is applied to Social Security, food stamps, Supplemental Security Income, and other programs is determined by the increase in the consumer price index (CPI). The formula has been changed over the years to attempt to make it a more realistic reflection of increases in the price of consumer goods, according to economists. The chained CPI assumes that when prices increase for one product, people substitute a less expensive product.
Chained CPI = Cut to Social Security. That simple.
Please sign our petition that asks Congress to pass legislation that would require the CPI-E to be used to calculate annual Social Security COLAs.
Some in Washington are proposing the Chained CPI which is a benefit cut to Social Security. Tell them NO by signing our petition!
Sign the Petition Here:
http://www.thetruthnow.org/Petition
Seniors rely on the mail for everything from bill paying to collecting #SocialSecurity benefits. We must #SaveTheUSPS! https://www.cbsnews.com/news/postal-service-louis-dejoy-delivery-10-year-plan/