One-time payment of $250 would avoid the first stagnation of benefits since 1975
WASHINGTON, DC-U.S. Senator Bob Casey (D-PA) has cosponsored legislation to provide a one-time payment of $250 to Social Security recipients to offset the expected lack of a cost-of-living adjustment (COLA). Social Security COLAs are by law determined by the Consumer Price Index. Because of the current economic conditions, there will likely be no Social Security COLA for the first time since 1975.
“Social Security recipients should not be punished twice because of a bad economy,” said Senator Casey. “The economy has kept the Consumer Price Index down, but it hasn’t stopped medical costs from going up and pension accounts and home values from going down. Without action, those living on fixed incomes will be faced with a greater burden.”
A final decision from the Social Security Trustees is expected next month. However, since the Consumer Price Index is below the index from last year, the expectation is that there will be no Social Security increase.
Nearly 70 percent of beneficiaries depend on Social Security for at least half of their income, and Social Security is the sole source of income for 15 percent of recipients.
The Emergency Senior Citizens Relief Act introduced by Senator Bernie Sanders (I-VT) and Peter DeFazio (D-OH) in the House of Representatives is fully paid for and would not increase the deficit. The bill would apply the Social Security payroll tax on household incomes above $250,000 and below $359,000 in 2010. Under current law, only the first $106,800 of earned income is subject to the payroll tax. No one earning $250,000 or less would see their taxes go up under this legislation.
###
