The Chained CPI is bad for Social Security

Social Security COLA Cut Will Chain Many Seniors and People with Disabilities to a Poorer Life

Some politicians in Washington are preparing to cut your Social Security COLA for good–even after two years without getting a COLA. This COLA cut has an obscure name: chained-CPI. But it would do real damage by changing the formula used to calculate the COLA. Here’s what you need to know about it:

• It’s a benefit cut. It’s not some minor technical change to the COLA. It’s a real cut to the benefits you have earned every year into the future.
• It cuts benefits more with every passing year. After 10 years, your benefits would be cut by about $500 a year for the average retiree. After 20 years, your benefits would be cut by about $1,000 a year.
• It hits today’s Social Security beneficiaries. Politicians like to say that their cuts to Social Security will not affect those getting benefits today. Wrong! Switching to the chained-CPI would hit all current beneficiaries.
• We need a higher COLA, not a lower one. The current COLA is not large enough–it does not adequately account for large health care cost increases faced by seniors and people with disabilities.

Key Fact Sheets

• The Chained CPI Harms All Beneficiaries — Even with Benefit Enhancement at 76
• Graph: Chained CPI Cuts After Benefit Enhancement at 76
• Social Security COLA Cut: A Benefit Cut Affecting Everyone 
• Social Security and VA COLA Cuts Will Have a Big Effect on Veterans and Their Families
• The Infeasibility of Protecting Vulnerable Populations from the Chained CPI

Top Blogposts and Stories

• Our ‘How-To Manual’ for Betraying Seniors and People with Disabilities

Social Security belongs to all of us. Don’t let them cut it!

Legislative

Strengthen Social Security Campaign Letter Urging Super Committee to Oppose Chained CPI COLA Cut
Strengthen Social Security Campaign Letter Urging President Obama Not to Propose Social Security Cuts in Deficit-Reduction Speech
Letter from Rep. Donna Edwards (D, MD-4) and over 70 Member of Congress to President Obama Opposing Chained CPI COLA Cut
Letter from National Disability Leadership Alliance to President Obama Opposing Chained CPI COLA Cut
Letter from National Disability Leadership Alliance to U.S. Representatives Opposing Chained CPI COLA Cut
Letter from National Disability Leadership Alliance to U.S. Senators Opposing Chained CPI COLA Cut
Consortium for Citizens with Disabilities Letter to President Obama Opposing Chained CPI
Consortium for Citizens with Disabilities Letter to U.S. Senators Opposing Chained CPI
Consortium for Citizens with Disabilities Letter to U.S. Representatives Opposing Chained CPI
Letter from Veterans Groups to U.S. Representatives Opposing Chained CPI
Letter from Veterans Groups to U.S. Senators Opposing Chained CPI
Letter from Veterans Groups to Super Committee Opposing Chained CPI

Media

Press Release: Social Security COLA Change Being Considered by Obama Administration and Congressional
Media Coverage of Social Security COLA Cut–Chained CPI Issue
Budget Negotiators, Would Cut Benefits, Betray Seniors and Families, Experts Charge
Social Security COLA Cut Statement of Nancy Altman, Co-Chair, Strengthen Social Security Campaign
The COLA Conundrum: Op-ed in the New York Daily News by Eric Kingson, Co-Chair, Strengthen Social Security Campaign, and Michael Gecan
Politicians and Leaders Call for Holding Current Beneficiaries Harmless
Politicians and Leaders Against Cutting Social Security to Reduce the Deficit
Strengthen Social Security Campaign Members Collected Statements Against COLA Cut