Modest Social Security COLA increase seen as chump change by some

Published in RINewsToday on October 16, 2023

Last week, the Social Security Administration (SSA) announced that Social Security and Supplemental Security Income (SSI) benefits for more than 71 million beneficiaries will increase 3.2% in 2024, about $59 per month starting in January. The 2024 payment declined from last year’s 8.7%, but that had been the highest in four decades. And, its higher than the average 2.6% increase recorded over the past 20 years.

The Social Security Act determined how the cost-of-living adjustment (COLA) is calculated. Enacted on August 14, 1935, the Act ties the annual COLA to the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as determined by the Department of Labor’s Bureau of Labor Statistics.

More than 66 million Social Security beneficiaries will see that COLA increase 3.2% beginning in January 2024, and increased payments to approximately 7.5 million people receiving SSI will begin on December 29, 2023. (Note: some people receive both Social Security and SSI benefits).  

“Social Security and SSI benefits will increase in 2024, and this will help millions of people keep up with expenses,” observes Kilolo Kijakazi, Acting Commissioner of Social Security in an Oct. 12 statement announcing this year’s COLA increase.

According to SSA, some other adjustments that will also take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $168,600 from $160,200.

Advocacy groups on aging talk turkey about COLA

“The annual COLA is a reminder of Social Security’s unique importance. Unlike private-sector pension plans, whose benefits erode over time, Social Security is designed to keep up with rising prices, noted Nancy Altman, President of the Washington, DC-based Social Security Works (SSW), in response to SSA’s COLA announcement.  

“Retirees can rest a little easier at night knowing they will soon receive an increase in their Social Security checks to help them keep up with rising prices,” said Jo Ann Jenkins, AARP chief executive. “We know older Americans are still feeling the sting when they buy groceries and gas, making every dollar important,” she added, stressing that Social Security has been the foundation for financial security for hundreds of millions of retirees. “SSA’s COLA announcement shows that it’s continuing to deliver on this promise,” she says.  

However, Max Richtman, President and CEO, National Committee to Preserve Social Security and Medicare charges, “While we are grateful that Social Security is the only major retirement program with a built-in cost-of-living adjustment, the current formula for determining COLAs is inherently flawed. SSA’s current COLA formula doesn’t truly reflect the increase in prices for the goods and services that beneficiaries rely on.”

According to Richtman, the 3.2% 2024 COLA only represents a modest $59 increase in the average monthly benefit for retired workers, and that’s before deducting the projected increase in the 2024 Medicare Part B premium of about $10 per month. Because of this the average retirement beneficiary will receive a net COLA of about $50. 

Richtman notes, “That is not enough for a tank of gas or half a week’s worth of groceries in many states. The net COLA will barely cover one brand-name prescription co-pay for some patients.”  

Last year, Richtman noted that the COLA of 8.7% was unusually high, the highest in some 40 years. But post-pandemic inflation was also at record highs, he said, noting that historically, COLA’s have been relatively low. In fact, the COLA has been ZERO; three times since 2009.  

“Seniors deserve an accurate COLA formula that accounts for the impact of inflation on their living costs. That is supposed to be the entire purpose of a COLA. The current formula measures the impact of inflation on urban wage earners and clerical workers. How is that a reasonable formula for seniors? Seniors have different spending patterns than urban wage earners & clerical workers,” asks Richtman.  

Richtman notes that seniors spend more than other age group on expenses like housing, long-term care, and medical services. “We strongly favor the adoption of the CPI-E (Consumer Price for the Elderly) for calculating COLAs. The CPI-E would more accurately reflect the impact of inflation on the goods and services seniors need, he believes. 

The CPI-E is included in both major pieces of legislation to expand and protect Social Security that have been introduced in this Congress: Bernie Sanders’ Social Security Expansion Act and Rep. John Larson’s Social Security 2100 Act.  We have endorsed both of those bills as part of our commitment to boosting Social Security for current and future retirees. It’s past time for Congress to act,” says Richtman. 

Although the 3.2% COLA is well above the 2.6% average over the past 20 years, a newly released retirement survey released on Oct. 12, 2023, by The Senior Citizens League (TSCL) indicates that seniors are pessimistic about their financial well-being in the upcoming months and very concerned about growing calls on Capitol Hill for Social Security cuts. Sixty-eight percent of survey participants report that their household expenses remain at least 10 percent higher than one year ago, although the overall inflation rate has slowed. This situation has persisted over the past 12 months.

According to TSCL’s latest retirement survey, worry that retirement income won’t be enough to cover the cost of essentials in the coming months is a top concern of 56 percent of survey respondents. Social Security benefit cuts are an even bigger concern, ranked as the number one worry by nearly 6 out of 10 survey participants, or 59%. Over the past year, benefit cuts and trims have affected a large percentage of older Americans low-income households, individuals who can least afford them.

A year ago, TSCL warned that higher incomes due to the 5.9% and 8.7% COLAs in 2022 and 2023 could potentially affect eligibility for low-income assistance programs such as SNAP and rental assistance. Earlier this year, federal emergency COVID assistance for SNAP (food stamps) and Medicaid also ended. Surveys conducted in 2022 and this year suggest that significant numbers of lower-income older households have lost access to some safety net programs over the past 12 months, the survey finds.

A Final Note…

Social Security plans to start notifying beneficiaries about their new COLA amount by mail starting in early December. Individuals who have a personal “my Social Security account” can view their COLA notice online, which is secure, easy, and faster than receiving a letter in the mail. People can set up text or email alerts when there is a new message–such as their COLA notice—instead of waiting for them in my Social Security.

People will need to have a “my Social Security account” by November 14 to see their COLA notice online. To get started, visit www.ssa.gov/myaccount.

Information about Medicare changes for 2024 will be available at www.medicare.gov. For Social Security beneficiaries enrolled in Medicare, their new 2024 benefit amount will be available in December through the mailed COLA notice and my Social Security’s Message Center.

For details about SSA’s 2024 Changes, go to: https://www.ssa.gov/news/press/factsheets/colafacts2024.pdf.

Will Magaziner fulfill call to reestablish House Aging Committee? 

Published in RINewsToday on October 9, 2023

With Congressman David Cicilline retiring from Congress, no House lawmaker has yet stepped up to reintroduce, H.R. 583,  the Rhode Island lawmaker’s resolution to reestablish the House Select Committee on Aging (HSCoA).  Without receiving a vote in the House Rules Committee at the end of the 117th Congress, the resolution was considered “dead.” On his way out Cicilline was not successful in passing the legislative baton and finding a new original sponsor. 

The resolution to approve the initial HSCoA was passed on October 8, 1974, by a large margin (299–44) in the House. Its legislative duties expired in 1992 during the 103rd Congress, as the House leadership was under pressure to reduce its internal costs to save $1.5 million and to streamline the legislative process. 

On May 26, 2016, Cicilline began his legislative efforts to bring back the HSCoA.  The simple resolution, consisting of 245 words, would authorize the Select Committee to study the use of all practicable means and methods of encouraging the development of public and private programs and policies which will assist seniors in taking a full part in national life and which will encourage the utilization of the knowledge, skills, special aptitudes, and abilities of seniors to contribute to a better quality of life for all Americans.

HSCoA would not craft legislative proposals, but hold investigative hearings to put the Congressional spotlight on aging issues. Its purpose was to push for legislation and other legislative actions, working closely with standing committees, through regular committee channels. 

According to the Congressional Research Service, it would be relatively simple to create a select committee by approving a simple resolution that contains language establishing the committee—giving a purpose, defining membership, and detailing other issues that need to be address.  Salaries and expenses of standing committees, special and select, are authorized through the Legislative Branch Appropriations bill. 

Once introduced, the resolution would be referred to the House Rules Committee for consideration.  If passed, it would be scheduled for a floor vote.  If passed, no Senate action or Presidential signature would be required.

The fourth time’s not the charm

Over eight years (during four Congressional Sessions), Cicilline was unsuccessful in getting the support of either the Republican or Democratic House Speakers to pass his resolution. During the 114th Congress Cicilline began his legislative push to bring back the HSCoA by introducing H. Res. 758.  Twenty-eight Democratic lawmakers out of 435 House members (with no Republican supporting) became cosponsors. But it caught the eye of the co-chairs of the Seniors Task Force (later renamed the House Democratic Caucus Task Force on Aging & Families), Congresswomen Doris Matsui (D-CA) and Jan Schakowsky (D-IL). The lawmakers became cosponsors of this resolution.

Correspondence penned by Cicilline to House Speaker Paul Ryan (R-WI) requesting support of H.R. 758 went unanswered.   Without the blessings of the GOP House Speaker, the resolution was not considered in the House Rules Committee and no floor vote scheduled.  

Two years later, with Ryan’s GOP caucus still retaining the control of the House during the 115th Congress, Cicilline’s H. Res. 160 would again not gain legislative traction. At that time only 27 Democratic lawmakers stepped forward to become cosponsors, just like the previous Congressional session, with the resolution not attracting one single GOP lawmaker as a cosponsor.    

For the third time, during the 116th Congress, Cicilline would  introduce H. Res. 821 to resurrect the HSCoA. Even with House Speaker Nancy Pelosi controlling the lower chamber’s legislative agenda, the resolution would not get Rules Committee consideration, again blocking it from reaching the floor for a vote.

Even with House Speaker Pelosi retaining the gavel again during the 117th Congress, Cicilline could not push H. Res 583 to the legislative goal line.  Like Cicilline’s other three attempts, the resolution was referred to the House Committee on Rules for mark-up and vote. Without Pelosi’s blessings and support for passage, like previous attempts, the  resolution died at the end of the Congressional session.   

Cicilline’s efforts drew the support and attention of Max Richtman, President and CEO of the Washington, DC-based National Committee to Preserve Social Security and Medicare, who was former Staff Director of the Senate Special Committee on Aging, the Leadership Council of Aging Organizations (representing 66 national aging groups), along with President Nancy Altman of Social Security Works, and Chair of Strengthen Social Security Coalition.   

Robert Weiner, former chief of staff of the HSCoA, Tom Spulak, former staff director and General Counsel of the House Rules Committee, and Vin Marzullo, a well-known aging advocate in Rhode Island, were strong advocates for the resolution’s passage.

It’s a no-brainer not to bring back HSCoA

Weiner, the President of Robert Weiner Associates News, who was a close friend and confidant of Claude Pepper, clearly knew the importance Cicilline’s efforts to bring back the HSCoA and its impact on the quality of life of America’s seniors.  Weiner, who served as Staff Director for the Subcommittee on Health and Long-term care from 1975 to 1977 and Chief of Staff of the full Aging Committee, from 1976 to 1980, remembered how the late Congressman Claude Pepper used the Select Committee as a force to push Congress to tackle aging issues.

“Bringing it back would be immeasurably helpful regardless of which party has the White House or controls Congress in assuring the best health care programs for seniors,” says Weiner. 

Weiner says that the HSCoA successfully prodded Congress to abolish forced retirement, investigate nursing home abuses, monitor breast cancer screening for older women, improve elderly housing, and bring more attention to elder abuse by publishing a number of reports, including “Elder Abuse: An Examination of a Hidden Problem and Elder Abuse: A National Disgrace,” and “Elder Abuse: A Decade of Shame and Inaction.” The Committee’s work would also lead to increased home care benefits for the aging and establishing research and care centers for Alzheimer’s Disease, he said.

“One of the best-known aging accomplishments of Claude Pepper was to end mandatory retirement by amending the Age Discrimination in Employment Act,” adds Weiner, noting that with HSCoA support the bill passed 359 to 2 in the House and 89 to 10 in the Senate, with President Jimmy Carter signing the bill into law despite strong opposition of the Business Roundtable and big labor.

Weiner noted that among the HSCoA’s other legislative achievements was supporting the passage of legislation creating standards for supplemental insurance and holding hearings to expose cancer insurance duplication. “Witnesses were literally forced to wear paper bags over their heads to avoid harassment by the insurance companies. That legislation became law,” he said.

According to Weiner, “Republican lawmakers just didn’t want to support Cicilline’s resolution to reauthorize the HSCoA,” says Weiner, despite the fact that Congressman John Heinz  (R-Pa.), later a renowned Senator, was an original prime sponsor of the House resolution that would initially establish the select committee. 

Seniors are now the most powerful voting block who would see the need, like Heinz, for a HSCoA, especially to protect Social Security, Medicare and other federal aging programs, says Weiner.  Republican House lawmakers are threatening to cut Social Security benefits and raise the full-time retirement age, he warns, calling their actions “reforms.” “But the program is actually solvent, with trillions in surplus beneficiaries paid for as the Pepper-Reagan original deal provided,” he notes. 

If HSCoA resolution is passed during the 118th Congress, the Republicans would control its legislative agenda.  Historically, the House select committee allowed open, bipartisan debate from different ideological perspectives to promote bipartisan consensus that, in turn, would facilitate the critical policy work of the standing committees.

Passing the torch

Who will ultimately pick up the legislative baton from Cicilline to become Rhode Island’s fiery aging advocate.  Will it be Congressman Seth Magaziner, or the newly elected Congressman from Rhode Island’s Congressional District 1 to step to the plate?

Why shouldn’t Magaziner or Cicilline’s replacement follow in the footsteps of former Rhode Island Congressman John E. Fogarty (dec.) and be the original sponsor of legislation that will have a major impact on national aging policy.  The lawmaker would become a hero to America’s seniors.  The White House Conference on Aging was the result of legislation successfully sponsored by Fogarty, and led to the enactment of his bill to establish an Administration of Aging in the Department of Health, Education and Welfare.  He was the original sponsor of legislation that established the Older Americans Act of 1965.

But even if a Rhode Island Congressman makes a decision to become the original sponsor to Cicilline’s resolution that reestablishes the HSCoA, passing this resolution in a GOP-controlled House will require support from that caucus. 

Congressmen Brian Fitzpatrick (R-PA) and Josh Gottheimer (D-NJ), co-chairs of the “Problem Solvers Caucus,” consisting of essentially an equal number of 63 Republican and Democratic lawmakers, may well be the way to finally pass a resolution to reestablish the HSCoA. 

Weiner, who would later become a senior staffer to both the Clinton and Bush White Houses and now is a national columnist and winner of the National Press Club President’s Award for recruiting young journalists, agrees that it is now time to bring the Problem Solvers Caucus to the forefront to endorse and together have a bipartisan House support push for reestablishing the HSCoA.  “The Aging Committee has always been bipartisan, with leaders including not only Pepper and Ed Roybal as chairs, but supportive ranking minority members including then House members — later Senators — Chuck Grassley, Bill Cohen, and John Heinz.

Rally round Martin O’Malley for Social Security Administration Commissioner

Published in RINewsToday on August 7, 2023

Just weeks ago, President Joe Biden nominated former Maryland Governor Martin O’Malley, Social Security Commissioner, to lead the Social Security Administration (SSA) in delivering benefits to 67 million Americans per month, totaling over 1 trillion dollars in benefits paid during the year. With the SSA Trust Fund running out of money in 2033 if changes are not made to financially shore up the program, O’Malley will be a key player in the fierce partisan battle on Capitol Hill to address the SSA’s solvency.   

In a tweet with over 91,000 views after his nomination, O’Malley said: “Humbled and honored to be chosen by @POTUS to lead @Social Security into the future. President Biden believes Social Security is a sacred promise.  I look forward to earning the Senate’s approval and serving with the hardworking patriots of the U.S. Social Security Administration.” 

After firing Andrew Saul in July 2021, a hold-over from President Trump’s administration who refused to resign, Biden had named Kilolo Kijakazi, who served as SSA’s deputy commissioner for retirement and disability policy, as Acting SSA Commissioner.  Over her tenure, Kijakazi oversaw the Baltimore, Maryland based independent agency’s efforts to maintain customer service amid the COVID-19 pandemic that forced the closure of SSA field offices throughout the nation. With the agency’s staffing levels at a 25-year low, along with using outdated technology, customer service plummeted because of long waits for phones in-person service.

Now O’Malley is headed to replaces Kijakazi as Social Security Commissioner. If confirmed by the Senate, he will serve a six-year appointed term.  O’Malley will be directly responsible for all programs administered by SSA; for state-administered programs directed by SSA; and for certain functions with respect to the black lung benefits program.

Lots of experience under O’Malley’s belt

O’Malley’s background as two-term Mayor of Baltimore and two-term Governor of Maryland, where he adopted data and performance-driven and customer service technologies to tackle complex challenges, will be helpful as he grapples with how to manage an understaffed and underfunded agency that has reduced SSA’s ability to determine in a timely fashion eligibility of persons seeking retirement, survivor, and disability benefits, and updating benefits promptly when circumstances change.  He has written extensively about how to govern for better results by measuring the outputs of government on a real-time basis.  

During his time as mayor, O’Malley’s policies helped achieve the greatest crime reduction of America’s largest cities. Prior to being elected Mayor, he served as a member of the Baltimore City Council, and Assistant States Attorney for the City of Baltimore before that.

According to the Georgetown University’s Institute for Politics and Public Service, O’Malley was called the best manager in government by Washington Monthly magazine.  “Under his leadership Maryland achieved nation-leading progress: Best public schools in America for an unprecedented five years in a row (Education Week); one of the top states in the nation for holding down the cost of college tuition (College Board); and #1 in innovation and entrepreneurship for three years running (U.S. Chamber of Commerce).” 

In 2016, O’Malley ran for the Democratic Party’s nomination for President of the United States. He dropped out of the race in the winter of 2016 after placing third in the Iowa caucus. He also served two terms as chair of the Democratic Governors Association and was appointed to the nation’s first-ever Council of Governors by President Obama in 2010.

O’Malley received his bachelor’s degree from Catholic University and his law degree from the University of Maryland. Since 2016, he has lectured on public administration at numerous universities and institutions, including the University of Maryland, Harvard University, Georgetown University, and Boston College School of Law.

He and his wife, Katie, a District Court judge, have two daughters, Grace and Tara, and two sons, William and Jack.

Calls for O’Malley’s Senate Confirmation

On July 26, Democratic lawmakers and social security advocates were quick to issue statements of support, strongly endorsing and celebrating O’Malley’s nomination to be SSA Commission.  Here is a listing of a few of these endorsements:

Oregon Senator, Chair of the Senate Finance Committee, Ron Wyden: “Social Security needs a confirmed commissioner in order to ensure Americans are receiving the best service possible for their earned Social Security benefits. Governor O’Malley is a proven leader with experience running a large organization that millions of families count on. I look forward to moving this nomination through the Finance Committee as soon as possible.” [Statement, 7/26/23 – https://www.finance.senate.gov/chairmans-news/wyden-statement-on-omalley-nomination-to-lead-social-security

Connecticut Congressman John Larson: “I applaud President Biden for nominating a champion for Social Security, Martin O’Malley, to lead the Social Security Administration and move it forward to better serve current and future beneficiaries. Governor O’Malley has long supported protecting and expanding Social Security. He knows just how important this program is to our seniors and that the modest payments they live on are simply not enough. I look forward to working alongside him as we work to ensure SSA has the resources it needs to serve our most vulnerable Americans for decades to come.” [Statement, 7/26/23 – https://larson.house.gov/media-center/press-releases/larson-statement-biden-nomination-martin-omalley-commissioner-social

Nancy Altman, President, Social Security Works: “Social Security Works and I, personally, applaud the nomination of Governor O’Malley, a longtime Social Security champion. We will do all we can to ensure his swift confirmation.  We look forward to working with him, once confirmed, to secure more funding for SSA as the president requested and higher benefits, with no cuts, as he, President Biden, and indeed the Democratic Party, through its 2020 platform, have called for.” [Statement, 7/26/23 – https://socialsecurityworks.org/2023/07/26/martin-omalley-will-fight-for-social-security/

Max Richtman, President and CEO, National Committee to Preserve Social Security and Medicare: “We commend President Biden for nominating former Maryland governor Martin O’Malley as Social Security Commissioner. It has been more than 20 years since the Senate has confirmed a permanent commissioner nominated by a Democratic president, and it is way past time for the Social Security Administration (SSA) to have one. As a confirmed commissioner, Martin O’Malley will be able to advocate effectively for SSA, which has been chronically underfunded and has struggled to provide adequate customer service. 

As a presidential candidate in 2016, Governor O’Malley championed the expansion of Social Security. He proposed boosting benefits and adopting a more generous (the CPI-E) for calculating COLAs — while adjusting the payroll wage cap so that the wealthy pay their fair share.  He insisted that ‘it is our responsibility to ensure that Americans who put in a lifetime of hard work are able to retire with the dignity they deserve.’ American workers’ payroll taxes largely fund the SSA.  They have every right to expect the agency that administers their benefits to be fully funded — with a permanent commissioner at the helm. The Senate should confirm Governor O’Malley in a timely manner when it returns from August recess.”

Richard Fiesta, Executive Director, Alliance for Retired Americans: “Members of the Alliance for Retired Americans are pleased that President Biden has nominated former Maryland Governor Martin O’Malley to be the next Social Security Administration (SSA) Commissioner. The SSA needs a strong Commissioner now more than ever. With 10,000 Americans turning 65 each day, the workload increases every day, and the budget has been woefully inadequate to meet the needs of seniors, people with disabilities and all-American families. Gov. O’Malley has a proven track record and the experience to navigate these challenges and ensure that Americans are able to get the benefits they have earned. American workers have earned their Social Security benefits, paying into the system with every paycheck. They deserve world class service from a fully staffed workforce equipped with the best tools and technology available. The Alliance for Retired Americans is confident that under Governor O’Malley’s leadership SSA will deliver. There is no time to waste. We urge the Senate to confirm Gov. O’Malley without delay.”

As SSA’s Commissioner, O’Malley will become the point person for Biden to push for an increase in the agency’s administrative expenses to improve computer technology, open field offices across the nation to improve the agency’s customer service by reducing backlog and wait-time on phone to its 67 million beneficiaries. (https://retiredamericans.org/retirees-praise-biden-nomination-of-martin-omalley-to-be-social-security-commissioner/)

Final thoughts…

Like Biden, O’Malley calls for defending the Social Security program against Republican attack, supporting the expansion of Social Security benefits, and raising SSA taxes on higher income beneficiaries. With Senate Republicans opposing these policies and a razor-thin Democratic majority in the upper chamber, expect O’Malley’s nomination to squeak by in being confirmed.  After the Senate returns from its month-long August recess, Senate Majority Leader Chuck Schumer (D-New York) must quickly move to schedule a vote on O’Malley’s nomination.  SSA now needs its top leader in place to begin working to fix SSA’s ongoing issues of financial solvency and customer service issues.

For more details about O’Malley, go to https://en.wikipedia.org/wiki/Martin_O%27Malley.