New York :
Although as of the 31st of this month, millions of Social Security beneficiaries will see the annual cost of living increase reflected in their checks, for some the 1.3% increase is not enough, especially in the era of coronavirus.
Activists who advocate for greater access to funds from Social Security programs push for legislation on the Democratic Representative from Oregon, Peter DeFazio, looking for a new adjustment in cost of living index (COLA) under which the increase in SS funds is established.
The Social Security payment in the United States is adjusted each year according to the level of inflation to ensure that the purchasing power of benefits is not impaired by rising prices. Using the cost of living adjustment, or COLA, the Government measures consumer prices for a variety of services and household consumer goods to establish the increase in profit. Profits increase if there is a measurable increase, highlights an AARP entry.
The piece of legislation, presented in mid-October, would replace the announced increase from 1.3% of the COLA to 3% in 2021.
For Mary Johnson, analyst at The Senior Citizens League, the alteration is a way to provide beneficiaries with a fairer and more adequate inflation adjustment.
Call to be included in the spending law
Speaking to Think Advisor, Johnson said he does not know if the representative will try to include the legislation as part of the spending laws that Congress is evaluating.
In fact, this Wednesday, the House of Representatives approved a proposal to finance the federal Administration in the short term and avoid the closure of agencies, which will allow legislators to continue negotiations for a new stimulus package to alleviate the effects of the pandemic.
From the Senate approving the measure, as anticipated, the Legislature would guarantee the funds to keep the Government open until December 18.
At the moment, the DeFazio measure (HR 8598) is before the House Forms and Means Committee for consideration and has 95 co-sponsors.
Additional $ 398 per year
If the Democrat’s measure were passed as part of the omnibus funding bill, the 3% increase in Social Security funding would mean an additional $ 398 a year per beneficiary on average.
“Due to the COVID-19 pandemic, retirees are facing additional financial burdens to stay safe,” the representative said in statements when presenting the measure. “This absolutely anemic COLA doesn’t even come close to helping them with their daily expenses, leaving aside those exacerbated by COVID-19“, Held.