AARP Pleased Chained CPI Not in Budget
Social Security Benefit Cut Would Have Impacted Millions
AARP Executive Vice President Nancy A. LeaMond released the following statement in reaction to reports that the Social Security benefit cut called Chained CPI would not be in President Obama’s FY2015 budget proposal:
“We’re pleased that the President has recognized that Social Security should be kept separate from the rest of the federal budget, and should not be part of any proposal that would cut benefits to reduce the deficit. As the President and Congress work to address the challenges facing our nation, AARP believes it is time for responsible solutions that improve the retirement and overall economic security of current and future generations.
“The Chained CPI included in the President’s budget last year would have made substantial cuts to Social Security benefits over the next ten years. Cuts to benefits would start immediately, taking money from the pockets of current beneficiaries, and would grow larger over time, having the greatest impact as Americans grow older and rely more on their Social Security benefits. On top of Social Security cuts, Chained CPI would also cut additional benefits for veterans and people with disabilities, and raise taxes on most taxpayers.”
“As financial security grows ever more elusive for Americans of all ages, Medicare and Social Security have grown more important for today’s retirees, and their families. AARP believes we should not reduce the deficit by weakening the programs that provide the very foundation of health and retirement security for current and future generations.”
What is the chained-CPI? CPI stands for consumer price index, a formula that looks at how the prices of stuff we need (food, for example) change over time. It's used to make cost-of-living adjustments in programs such as Social Security, veterans benefits and food stamps.
Watch David Certner's "Plain English" explanation of the Chained Consumer Price Index, here:
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