Congressman McGovern Calls for Swift Passage of Social Security COLA Bill
Press Release
U.S. Rep. Jim McGovern (D-MA) today called on the House Leadership to bring H.R. 5987, "The Seniors Protection Act of 2010," to the floor for swift passage as soon as Congress reconvenes. Rep. McGovern is a co-sponsor of the bill, introduced by U.S. Rep. Earl Pomeroy (D-ND).
According to recent news reports, on October 15 Social Security will likely announce (because of a long-standing statutory formula) that there will not be a cost-of-living-adjustment (COLA) next year. H.R. 5987 would provide a one-time payment of $250 in the event that no COLA is payable in 2011.
"Our seniors did not cause the financial crisis and the resulting recession -- Wall Street greed and bad Republican policies did," Rep. McGovern said. "And seniors should not be forced to go without a COLA. I urge the House Leadership to take up H.R. 5987 as soon as possible in order to give our seniors some peace of mind."
Social Security benefit levels are quite modest -- only $14,000 a year for the average retiree. Yet, the median income for senior households is a mere $24,000, reflecting just how much Social Security means to most elderly Americans. Six in ten seniors rely on Social Security for more than half of their income. About a third of retirees have little other than Social Security to live on.
Seniors' other sources of income have weakened as a result of the economic downturn: the financial collapse reduced the value of their IRAs; interest rates are low, reducing income from seniors' savings; and the housing crash reduced seniors' home equity. The one-time $250 payment for retirees and other beneficiaries would represent less than two percent of the average annual Social Security benefit.
"Just because the technical formula shows that a COLA is not warranted, that doesn't mean that too many of our seniors aren't struggling to make ends meet," Rep. McGovern said. "Passing this bill is the right thing to do."
H.R. 5987 has been endorsed by the National Committee to Protect Social Security and Medicare and the Alliance for Retired Americans.
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