Cybersecurity Information Sharing Act of 2015

Floor Speech

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Ms. HIRONO. Mr. President, I rise today to talk about some disappointing news. For only the third time in 40 years, Social Security beneficiaries will not receive a cost-of-living adjustment, or COLA, this year. This news will impact the nearly 60 million American retirees, dependent survivors, and disabled workers who rely on Social Security to make ends meet.

Social Security is the most effective anti-poverty program in U.S. history. Without Social Security, about 44.1 percent of America's seniors would be living in poverty.

In Hawaii, one in six residents depends on Social Security to help pay their bills and keep a roof over their heads. It is the only source of income for 25 percent of our seniors in Hawaii.

We live in a world where wages just aren't rising fast enough, and real pensions are disappearing. More and more workers are working longer and harder with less to show for it when they retire.

According to a 2014 Federal Reserve study, nearly 1 in 37 respondents reported having no retirement savings or pensions whatsoever, pointing out once again that Social Security benefits are essential to millions of working Americans and retirees.

For many who are already struggling to make ends meet, Social Security is all they can rely on. Absent a COLA, too many beneficiaries will see no increase in their primary source of income, making it harder to afford basic necessities, especially medical care.

One of my constituents from Wahiawa wrote to me recently and said:

I find it incredible that there are people who actually believe that Social Security is too generous. The average Social Security benefit is a whopping $14,000 a year and we've only seen an average 2 percent COLA over the past five years. I can assure you my health care costs have far exceeded that tiny increase.

Another constituent from Honoka'a was more direct in her concerns. She wrote:

I have worked very hard my entire life and have planned to retire in a few years. My worry is that I will not have enough money to live. I also may have to continue to work due to this deficit. My question is what are you going to do about it and what is your game plan? Year after year no one has done anything about it and has passed it down to the next person entering the Senate office or Congressional office. It is a problem that must be addressed immediately. Please help me and the rest of my baby boomer generation.

Congress needs to listen to these voices and act to responsibly strengthen and expand Social Security before it becomes yet another fiscal crisis.

That is why I introduced the Protecting and Preserving Social Security Act with Representative Deutch of Florida. Our bill does two key things that will help seniors now as well as help to ensure the strength of Social Security for decades to come.

First, our bill would help Social Security recipients by having basic COLAs on a more accurate formula of what seniors actually purchase. This formula is called the Consumer Price Index for the Elderly, or CPI-E. The CPI-E more accurately recognizes the rising costs for seniors and gives them a benefit boost.

According to the Bureau of Labor Statistics, if we were using the CPI-E right now, seniors would be getting a 0.6 percent COLA increase in 2016. That is about $100 more in benefits for the average person on Social Security next year. And while small, seniors tell me that every bit counts. Changing to the CPI-E will mean increases in Social Security benefits to more accurately reflect the rising costs that our seniors experience.

Second, our bill will pay for this benefit increase by requiring millionaires and billionaires to pay the same rate into the Social Security trust fund that everybody else pays. Few know that this year, once workers earned above $118,500, they stopped paying the payroll tax to support Social Security. In other words, Social Security contributions are capped for these high-wage earners.

But most workers, as we know, earn far less than $118,500. So with every paycheck, all year, most workers pay into Social Security. This is not fair. It is not fair that millionaires and billionaires get a Social Security tax loophole.

A corporate CEO could earn $118,500 in just one pay period and not contribute a single additional cent in payroll taxes for the rest of that year.

Our bill would gradually phase out the cap on payments into the Social Security trust fund over 7 years. That way, whether you earn $50,000 or $500 million a year, you keep paying at a fair rate to support Social Security in every paycheck all year long.

The Protecting and Preserving Social Security Act is a fair way to strengthen Social Security for decades to come, and it would give current seniors and beneficiaries a much-needed boost right away.

Social Security is one of the cornerstones of the middle class and the lifeline for millions of seniors. We must do all we can to protect and improve it for not just the current recipients but for those who will rely upon it in the future.This bill is supported by groups such as Social Security Works, the Strengthen Social Security Coalition, and the National Committee to Preserve Social Security and Medicare.

I urge my colleagues to join me in letting seniors in Hawaii and all across the country know that you are on their side by cosponsoring the Protecting and Preserving Social Security Act.

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