Sen. Bob Casey, D-Pa., chairman of the Senate Special Committee on Aging, has introduced new legislation, the Boosting Benefits and COLAs for Seniors Act, that would direct the Social Security Administration to adjust benefits based on the Consumer Price Index for Americans 62 years of age and older (CPI-E).
The change to the cost-of-living adjustment calculations — which currently use the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) — is intended to better reflect the costs that older adults face. But a look at previous COLAs shows that the senior-focused index would not always have resulted in higher benefits.
Co-sponsors of the bill include Sens. Richard Blumenthal, D-Conn.; Peter Welch, D-Vt.; John Fetterman,. D-Pa.; Kirsten Gillibrand, D-N.Y.; and Bernie Sanders, I-Vt.
"As the costs of basic goods and services for seniors rise, we cannot allow that promise to be broken," Casey said in a statement. "The Boosting Benefits and COLAs for Seniors Act would help seniors contend with rising costs and ensure that Social Security remains a lifeline for all who need it."
The bill, introduced on March 21, also directs the Bureau of Labor Statistics to calculate and publish the CPI-E on a monthly basis.
CPI-W vs. CPI-E
The COLA is currently based on the CPI-W from the previous year. "CPI-W is reflective of the everyday spending of Americans, and includes expenses like food, consumer goods, and housing, among others," Casey explained. "Despite this, Social Security benefits have not kept up with costs and older adults are left struggling to afford food, medications, clothing, and other necessities."
The CPI-E (E used to stand for Elderly) weights costs more often faced by older adults, like medical expenses, more heavily, Casey said.
