Social Security 2025 COLA expected to be small increase

Published in RINewsToday on September 16, 2024

Stay tuned… Next year’s cost-of-living adjustment (COLA) will be announced by the Social Security Administration (SSA) in mid-October, upon the release of September’s annual inflation adjustment data. SSA’s COLA for 2025 will be reflected in beneficiary checks starting in January of that year. Like clockwork, this happens annually, although beneficiaries may see their payments occasionally arrive a few days early due to holidays or weekends.

The Senior Citizen’s League (TSCL) releases its COLA projections each month. The official COLA is determined by the Labor Bureau’s revised CPI-W data from July, August and September.

Some say SSA’s 2025 COLA is “Chump Change”

With one month left, TSCL’s latest COLA model results, released on Sept. 11, 2024, predicts that next year’s COLA will be 2.5 % based on a decline from 2.9% to 2.5% in consumer price data. While 2.5% is lower than the 3.2% received in 2024, that wouldn’t be far from the historical norm. The COLA has averaged about 2.6% over the past 20 years. It went as low as 0.0% in 2010, 2011, and 2016 and as high as 8.7% in 2023.

According to TSCL, by law, the annual inflation adjustment is based on the average inflation during July, August, and September as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The Bureau of Labor Statistics averages the CPI-W for these three months and then compares it with the same timeframe from the previous year, says the Alexandria-based nonprofit advocacy group whose mission is to protect Social Security, Medicare, and veteran or military retiree benefits.

TSCL’s COLA latest analysis findings indicates that next year’s COLA of 2.5% would raise the average monthly benefit for retired workers of $1,920 by $48 or about $564 annually. The modest increase will not enable seniors to cover increasing cost of living expenses (including food, clothing, transportation, energy, and shelter costs). “Rising grocery prices is creating food insecurity for many retirees. Feeding America estimated that 5.5 million Americans age 60 and above suffered from food insecurity in 2021, in the most recent study available on the subject, and that number is likely higher today,” note the researchers.

“Due to a higher cost of living, older Americans are using more and more of their income each month just to get by compared to a year ago. “Sixty-five percent of seniors reported monthly expenses of at least $2,000, up from 55% in 2023,” says TSCL’s COLA analysis, noting that statistical testing shows that there’s almost no chance that this gap is due to noisy survey variation. (The 2024 survey had 2,129 respondents; 2023 had 2,258 respondents.)

But low-income seniors aren’t the only ones who have seen their expenses rise, either, say the researchers, noting that more seniors are spending at least $4,000 or $6,000 per month compared to 2023, too, while fewer are able to get by on $1,000 or less. TSCL says that a rise in monthly expenses wouldn’t be much of an issue if seniors’ higher expenses were going to fun activities things, like activities with their grandchildren, or discretionary costs, like bucket-list vacations. However, this is not the case, says the Social Security advocacy group. “Nearly 80% of senior households in the 2024 survey reported that their monthly budget for essential items like food, housing, and prescription drugs had increased over the last 12 months, with 63% saying they’re worried that their income won’t be enough to cover these basic costs in the coming months,” says the analysis findings.

Over the years, TSCL, along with other aging advocacy groups including the National Committee to Protect Social Security (NCPSSM) and Social Security Works, have called for higher COLAs.

Calls for Congress to change current COLA formula.

Last March, in correspondence to Sen. Bob Casey, Jr. (D-PA), chairman of the U.S. Senate Special Committee on Aging, NCPSSM, the Washington DC based Social Security advocacy group endorsed Casey’s legislative proposal, S. 3974, entitled the “Boosting Benefits and COLAs for Seniors Act.” The proposal has been referred to the Senate Finance Committee.

Specifically, Casey’s legislative proposal, introduced March 19, 2024, would direct SSA to adjust benefits based on CPI-E rather than CPI-W, if CPI-E would result in a larger increase in benefits. The Bureau of Labor Statistics (BLS) would calculate and publish the CPI-E on a monthly basis. The Senator believes it would be the most accurate measure of the real effect of inflation on the goods and services that are purchased by America’s seniors.

In NCPSSM’s correspondence, CEO and President Max Richtman strongly supported Casey’s call for requiring BLS to change the way it calculates SSA’s annual COLAs, using a CPI-E formula.

According to Richtman, SSA’s current formula for calculating COLAs is based upon the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which is a measurement by the BLS of the changes in the prices paid for a market basket of goods and services purchased by urban wage earners and clerical workers.

“The current CPI-W has fallen far short of providing needed inflation protection because it fails to adequately measure the spending patterns of seniors,” says Richtman in his endorsement of Seniors typically spend more on out-of-pocket health care costs than other Americans, and in most years, the cost of health care rises more quickly than general inflation,” he says. “We believe adoption of your bill would go a long way toward protecting those on fixed incomes from the ravages of inflation,” says Richtman.

The following organizations have endorsed S. 3974: Arc of the United States; Alliance for Retired Americans; American Federation of Government Employees; American Federation of State, County and Municipal Employees; California Alliance for Retired Americans; Justice in Aging; National Committee to Preserve Social Security and Medicare; National Education Association; National Organization of Social Security Claimants Representatives; Social Security Works; Strengthen Social Security Coalition.

While former President Donald Trump and Vice-President Kamala Harris have both pledged to protect Social Security, nether have put out a specific plan to keep America’s retirement program solvent.

According to the last Social Security Trustees report, the Social Security Old-Age and Survivors Insurance trust fund is projected to be depleted by 2033 at which point SSA will be forced to make a 21 percent across the board reduction. The nonpartisan Committee for a Responsible Federal Budget estimates that this would be a $16, 500 cut in annual benefits for a typical dual-income couple retiring at the time of trust fund depletion.

When the dust settles after the upcoming presidential election, the new president must make it a priority to hammer out a bipartisan fix along with pushing for requiring BLS to use the CPI-E Formula to accurately predict the impact of inflation on America’s retirees.

House Select Committee on Aging has new life

Published in RINewsToday on July 29, 2024

Just a month ago, the Washington, DC-based Leadership Council on Aging Organizations (LCAO), a coalition of 68 national nonprofit groups committed to representing seniors in Congressional policy making, formally endorsed Cong. Seth Magaziner’s (RI-2) H. Res. 1029, reestablishing the House Select Committee on Aging (HSCoA).

The freshman congressman picked up the baton from former Cong. David Cicilline, who resigned his seat and now heads the Rhode Island Foundation. The former Congressman had introduced a resolution to bring back the HSCoA during the 114^th-117^th Congresses.

At press time, Magaziner’s resolution, introduced on Feb. 23, 2024 (with 26 Democratic co-sponsors and no Republicans on board), has been referred to the House Committee on Rules for mark-up, and if passed, will be considered by the full House.

LCAO endorsed Cong. Magaziner’s 213-word resolution in a June 25th letter. H Res. 1029 amends the Rules of the House to establish a HSCoA. Although the panel will not have legislative jurisdiction, it’s authorized to conduct a continuing comprehensive study and review of a myriad of aging issues, from income maintenance, poverty, housing health (including medical and research, welfare, employment, education, recreation, to long-term care.

If passed, the Magaziner’s resolution would authorize the HSCoA to study the use of all practical 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 knowledge, skills, special aptitudes, and abilities of seniors to contribute to a better quality of life for all Americans.

Finally, H. Res. 1029 would also allow the HSCoA to develop policies that would encourage the coordination of both governmental and private programs designed to deal with problems of aging and to review any recommendations made by the President or by the White House Conference on Aging in relation to programs or policies affecting seniors.

LCAO Calls for Passage of H. Res. 1029

“As we all age together as a society, we see the need to find solutions as demand grows for paid and family care workers, along with finding opportunities to address retirement security. Addressing these demands in a fiscally responsible, bipartisan manner deserves greater attention, understanding and public engagement, says LCAO Chair Richard Fiesta, Executive Director of the Alliance of Retired Americans, in a June 25 letter written to Cong. Magaziner endorsing H. Res. 1029.

In the endorsement letter, Fiesta explained that while authorizing standing House Committees “perform exemplary oversight and legislative functions over matters within their respective jurisdictions, the HSCoA would have an opportunity to more fully explore a range of issues and innovations that cross jurisdictional lines, while holding field hearings, convening remote hearings, engaging communities, and promoting understanding and dialogue that would contribute to the solutions that present themselves as the number of older people in our nation increases.”

Looking back, LCAO’s letter noted that HSCoA, under Chairman Claude Pepper, closely worked with standing committees, in a team effort and a bipartisan manner, holding many joint hearings with them and helping to pass the end of mandatory retirement, 359-2 in the House and 89-19 in the Senate.”

Additionally, HSCoA “worked to protect Social Security, expose nursing home abuses and set transparency standards, expand home health care benefits as a way older people could often delay or avoid the need of entering into long-term care facilities, and so much more,” said Fiesta, noting that The Ways and Means, Education and Workforce, Energy and Commerce, and Space, Science and Technology were other committees that benefited from the partnership,” Fiesta said.

Finally, Fiesta stresses that HSCoA would also “complement the strong bipartisan work of the Senate Special Committee on Aging which has effectively promoted member understanding on a range of issues, including the concerns of grandparents raising grandchildren, elder abuse and fraud, the effects of the COVID-19 pandemic on older Americans and their families, the importance of financial literacy in planning for retirement, and the costs associated with isolation and loneliness.”

Magaziner talks turkey about H. Res. 1029

“Older Americans have worked hard their entire lives, and they deserve to retire and age with dignity,” says Magaziner, noting he became the primary sponsor of H. Res. 1029 because it “ensures that seniors in Rhode Island and across the country have their voices heard, needs met, and can enjoy their golden years with peace of mind.”

Magaziner was recently on parental leave and was unable to meet with former HSCoA staffers and aging advocates. He notes, however, that “my staff was able to listen to and gain valuable insight into the successes of the Committee and its role in fighting for America’s aging population.”

According to Magaziner, his staff is working hard to tell other offices about the benefits of the proposed Committee and will continue to look for ways to raise the profile of this resolution to encourage other Members to become co-sponsors. “I am proud that this resolution received the recent endorsement from the LCAO, along with other prominent organizations including the National Committee to Preserve Social Security & Medicare, AARP, Alliance for Retired Americans, Social Security Works and Meals on Wheels America,” he said, stressing that the support of advocates is important to encouraging House lawmakers to cosponsor the resolution.

Magaziner stresses that getting bipartisan support for H. Res. 1029 is important to him. “I’m ready to work with anyone, from either party, to deliver results for Rhode Island—and that includes finding common ground on important legislation like H. Res. 1029,” he says. “There’s still room for bipartisanship, and ensuring we address issues for seniors across the country should be an area where we can all agree,” he adds, calling on his Republican colleagues to work together with Democrats to move our country forward.

If not this year, push for next Congressional session

But with 98 days left before the upcoming presidential election, can Magaziner push H. Res. 1029 across the goal line?

With the House beginning its 6-week August recess, Bob Blancato, former Staff Director of the, Subcommittee on Human Services, urges voters to ask their lawmakers to support H. Res. 1029 if they are not a cosponsor. “Find them at public events and raise [the importance of their support], he suggests.

Blancato sees the importance of Cong. Magaziner sending another “Dear Colleague” letter to House lawmakers in soliciting cosponsors. “They should also target some of the House Caucuses, such as the bipartisan Congressional Woman’s Caucus and the Assisting Caregivers Caucus,” he recommends.

According to Bob Weiner, former Chief of Staff, House Select Committee on Aging under Chairman Claude Pepper (D-FL), the timing to push this resolution is after the upcoming presidential election. “Most important will be to hit the ground RUNNING at the start of the next Congress, with the agreement by Cong. Magaziner to introduce the first new session day, and give him and the allied groups and supporters the immediate opportunity to build cosponsors at that time,” he says, stressing that the count for the next Congress begins in the next Congress, which could well be a different party majority. “This is a terrific resolution which can have significant impact helping older Americans to protect and build their health and livelihoods, he adds.

Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare (NCPSSM) and a long-time member of the LCAO, agrees with Weiner’s assessment. “Historically, the House Permanent Select Committee on Aging served as a unique venue that allowed open, bipartisan debate from various ideological and philosophical perspectives to promote consensus that, in turn, helped facilitate the critical work of the standing committees. We believe that issues affecting seniors would be best advanced by the re-establishment of such a Committee in the House. Reestablishing a Select Committee on Aging in the House would also complement the strong bipartisan work of its counterpart in the Senate.”

“As was emphasized in the LCAO endorsement letter, we need Cong. Magaziner to tactfully work for bipartisan support of his House Resolution — a commitment he made to the voters in a 2022 campaign press conference that I attended,” says Vin Marzullo, former federal civil rights & social justice administrator and a Board member of Senior Agenda Coalition.

“Additionally, since the Magaziner resolution has less than half of the cosponsors obtained by former Cong. Cicilline, both the Congressman and his staff must step up their outreach efforts to Congressional members on the floor, related House Committee Chairs, House Caucuses, & the House Minority Leader,” he said, noting that grassroots efforts led to the support of Cong. Josh Gottheimer (D-NJ), Co-Chair of the bipartisan Problem Solvers Caucus”, stated Marzullo, also a former AARP RI President.

For details about the HSCoA, go to https://rinewstoday.com/congressman-magaziner-takes-baton-on-bringing-back-house-aging-committee-herb-weiss/.

Social Security changes expand access to SSI

Published in RINewsToday on May 20, 2024

Last week, the Social Security Administration (SSA) announced good news for Supplemental Security recipients. The federal agency published a final rule on April 19, 2024, to – “Expand the Definition of a Public Assistance Household.” The regulation announces one of several updates to Supplemental Security Income (SSI) regulations that will help people receiving and applying for SSI.

SSA continuously examines programmatic policy and makes regulatory and sub-regulatory changes as appropriate. SSI is a means-tested program providing monthly payments to adults and children with a disability or blindness, and to adults aged 65 and older. These benefits help pay for basic needs like rent, food, clothing, and medicine. People applying for and receiving SSI must meet eligibility requirements, including income and resource limits.

According to SSA’s Office of the Chief Actuary, once this rule is implemented and the effects have stabilized, in fiscal year 2033 its estimated that roughly 277,000 federal SSI recipients (4 percent of all SSI recipients) will have an increase in monthly payments compared to current rules, and an additional 109,000 individuals (1% increase) will receive Federal SSI payments who would not have been eligible under current rules. As of December, 2022, there were approximately 30,500 people in Rhode Island receiving SSI benefits.

SSA expands access to SSI program

Under SSA’s final rule (20 CFR Part 416), beginning September 30, 2024, the agency will expand the definition of a public assistance household to include households receiving Supplemental Nutrition Assistance Program (SNAP) payments and households where not all members receive public assistance. The expanded definition will allow more people to qualify for SSI, and increase some SSI recipients’ payment amounts. It also reduces reporting burdens for individuals living in public assistance households.

The SSA revised rule also changes the definition of a public assistance household when determining who in a household receives public assistance. The new rule defines a public assistance household as one that has both an SSI applicant or recipient, and at least one other household member who receives one or more of the listed means-tested public income-maintenance (PIM) payments (the any other definition).

The previous policy required all household members to receive public assistance. This change benefits SSI recipients living in households where only some members receive public assistance.

“I’m committed to making systemic changes to help people access the critical benefits they need, including SSI,” said Martin O’Malley, Commissioner of Social Security, in a May 9, 2024 statement announcing the release of the final rule. “By simplifying our policies and including an additional program geared towards low-income families, such as [those receiving] SNAP, we are removing significant barriers to accessing SSI. These changes promote greater equity in our programs.”

SNAP is the first PIM benefit added to the agency’s public assistance household definition since it was established in 1980. This change helps ensure the agency’s policies better represent the current landscape of means-tested programs in the United States, according to SSA.

These changes are key because if an applicant or recipient is determined to be living in a public assistance household, the agency assumes they are not receiving assistance from other household members that would otherwise be counted as income. This will allow more people to qualify for SSI and in some cases, receive a higher SSI payment.

Thumbs Up from aging network

“I commend the Biden administration for this needed expansion of the SSI program. It is a recognition that those in the greatest economic need in our nation need help. By expanding the definition of a public assistance household, it will not only allow more people to qualify for SSI but can also increase some existing SSI recipient’s payment amounts,” says Robert B. Blancato, Executive Director of the Washington, DC-based National Association of Nutrition and Aging Services Program, noting that programs such as SSI and SNAP are safety net programs for those who are truly [in need].

“It is disingenuous to lose qualification for one safety net program because of being eligible for another. The role of the federal government is to assist those most in need while minimizing bureaucratic red tape. This final rule shows a level of compassion we need to see more of in federal policy,” adds Blancato.

According to Maria Freese, Senior Legislative Representative at the Washington, DC-based National Committee to Preserve Social Security and Medicare, this new rule will take an important step toward simplifying some of the most complicated and burdensome rules governing the SSI program. SSI’s in-kind support and maintenance (ISM) rules reduce benefits dollar-for-dollar for the value of support from family or friends, such as a place to sleep, or help with groceries, up to one-third of benefits. SSI is the only federal program to reduce benefits in this manner. “While fewer than 1 in 10 SSI beneficiaries receive ISM, the current ISM rules make the program more complicated for nearly every SSI beneficiary. SSA is required to ask detailed, personal, and complicated questions concerning living arrangements, other household members and budgeting, not only once but repeatedly as family circumstances change,” she says.

Freese added: “Groups living together who qualify as ‘public assistance households’ are exempt from these reporting requirements, but the previous definition, which required that every member of the household receive public assistance, limited the ability of low-income beneficiaries to take advantage of the exemption. The new rule requires only one SSI beneficiary and one additional member of the household be a recipient of public assistance, and expands the qualifying programs to include the Supplemental Nutrition Assistance Program (SNAP, formerly food stamps).”

“This new rule will lessen hardship for struggling, low-income families, simplify the administration of the SSI program and lower costs and staff time for the Social Security Administration, which has been chronically underfunded. It represents good public policy, and reflects well on an agency working hard to provide the benefits working families deserve,” notes Freese.

According to Nancy Altman, President and CEO of the Washington, DC-based Social Security Works, this rule is an important step towards improving the Supplemental Security Income program (“SSI”). “Currently, SSI forces the most disadvantaged Americans to jump through numerous time-consuming, complicated, and burdensome hoops simply to get below-poverty level benefits. Simplifying the numerous burdensome requirements will not only ease the lives of those whom government is intended to serve, it will also reduce administrative costs,” she says.

“Ultimately, Congress needs to act to improve SSI, as well as adequately fund the SSA so it can hire and train enough staff to properly administer the program. In the absence of action from Congress, the Biden administration is doing what it can on its own, including this and other rule changes, says Altman.

Altman suggests that if Congress and the Social Security Administration truly want to save administrative costs and provide more accurate and timely payment amounts, more rules like these should be adopted and the laws governing SSI should be updated and simplified.”

With Social Security’s long-term purchasing power dwindling and heightening financial uncertainty for recipients, the League supports updating the definition of public assistance for beneficiaries receiving SSI, says Shannon Benton, Executive Director of the Alexandria, Virginia-based Senior Citizens League. “’The increased inability of seniors to make ends meet remains a pressing concern of The Senior Citizens League, and it should also be a pressing concern of Congress,” she says.

Adds Associate Director Kathleen Holt, of the Connecticut-based Center for Medicare Advocacy, “The expanded definition of ‘public assistance household’ is a thoughtful, focused way to ensure the dignity and needs of individuals in a residence are upheld.”

For more information on the SSI program, including who is eligible and how to apply, visit https://www.ssa.gov/ssi.

To read the final rule “Expand the Definition of a Public Assistance Household,” visit https://www.federalregister.gov/documents/2024/04/19/2024-08364/expand-the-definition-of-a-public-assistance-household.

For further details about the final rule, contact Tamara Levingston, Office of Income Security Programs, 6401 Security Blvd., Robert M. Ball Building, Suite 2512B, Woodlawn, MD 21235, 410-966-7384.