chained CPI

Dear Howard,
After two years with a zero COLA, you will receive a small increase in 2012. But Members of Congress from both parties say it is way too high — and that the COLA needs to be permanently reduced.

After a little over 30 years, they suddenly want to CHANGE the way your COLA is calculated and begin using something the economists call a "chained CPI" to calculate the COLA. This will "save" the government billions of dollars in Social Security and military retirement benefits but, to you and me, it is nothing more than a cut in Social Security benefits.

If the chained CPI had been used, the 2012 COLA would be about 20% LESS than it is! And, over a typical retirement, the average beneficiary will see their benefits reduced by over $20,000! This is an example of the kind of "back door cut" to Social Security that CAN AND WILL happen as President Obama and the special House/Senate Debt Reduction "Super Committee" look for ways to cut the deficit in the coming months.

Now, finally, we have legislation before Congress that could put the promises you received in writing and protect against these kinds of cuts! If we can pass this bill, your Social Security benefits will be guaranteed, in writing, and you will receive a certificate GUARANTEEING they will be paid.