Chained CPI not a good idea
To the editor:
During the next few months, Congress will be discussing ways to reduce the deficit. One proposal being considered for adoption is a chained consumer price index. This would replace the current system of calculating the cost of living adjustments; thus it would reduce benefits for current and future retirees and veterans as well.
Automatic cost of living adjustments for Social Security benefits were enacted in the 1970s to offset Social Security beneficiaries’ additional expenses from year to year resulting from inflation. A change in the way the cost of living is calculated is no small matter. It would take hundreds of millions of dollars out of the pockets of today’s seniors who worked hard to earn those benefits. And, because the chained CPI would compound this reduction over time, tomorrow’s seniors would fare even worse.
Social Security did not add one cent to the current deficit and should not be part of the current debate on reducing the deficit.
Along with other AARP volunteers in Ohio, we are asking our representatives in Congress not to adopt the chained CPI. Please join us.