Congressman Cohen: Social Security Should Give Seniors a Higher Cost of Living Adjustment

[WASHINGTON, D.C.] – Congressman Steve Cohen (TN-09) released the following statement today regarding the Social Security Administration’s announcement that there will only be a 0.3% increase in the annual cost-of-living adjustment (COLA) for Social Security and Supplemental Security Income (SSI) recipients in 2017.

“I am concerned that the minimal cost-of-living increase this year will place an undue burden on America’s senior citizens, disabled veterans, Supplemental Security Income recipients, and their families,” said Congressman Cohen. “Cost of living adjustments are vital to help these recipients keep up with the rising prices of medical care, prescription drugs, food and housing. I have cosponsored legislation to change the calculation for cost-of-living adjustments so seniors receive increases that better reflect their spending patterns. I will continue to look out for seniors and other Social Security beneficiaries to ensure that they receive the raise each year that they deserve.”

The annual COLA is based on the Bureau of Labor and Statistics measure of inflation through the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Congress enacted automatic increases for Social Security beneficiaries in 1975 and has averaged a nearly 4 percent increase per year since. Nearly 58 million Americans rely on Social Security benefits.

Congressman Cohen is a cosponsor of the “Seniors Deserve a Raise Act.” If enacted, this bill would tie future Social Security cost-of-living adjustments to Consumer Price Index for the Elderly (CPI-E) because it takes into account the spending patterns of the elderly, such as health care costs, prescription drug costs, food and housing that tend to rise more rapidly. The bill would also provide an immediate increase in Social Security benefits for senior citizens to compensate for the average difference between CPI-E and CPI-W. According to the U.S. Bureau of Labor and Statistics, using experimental data, the estimated CPI-E COLA increase for 2017 would be approximately 1.4%.

Congressman Cohen, along with his colleagues, will be sending a letter to Speaker Paul Ryan urging him to bring legislation to the House floor that would make CPI-E the calculation for COLAs for Social Security beneficiaries.