Obama Reportedly Drops Chained CPI from 2015 Budget

The White House has reportedly dropped from its 2015 budget proposal the use of chained consumer price index to calculate cost-of-living adjustments (COLA) for Social Security and other federal programs, according to news reports.

This is a major victory for AFGE and our labor and congressional allies who have fought against the switch the past two years. If chained CPI is adopted, a typical worker retiring at age 65 would lose $4,600 in 10 years, or $8,700 when he/she turns 80.

AFGE has been outspoken against what we view as a heartless cut that would financially devastate seniors, retirees, veterans, and the disabled. The union earlier this week expressed our support for the 117 lawmakers led by Rep. Allyson Schwartz of Pennsylvania who signed on to a letter asking President Barack Obama not to again include in his 2015 budget proposal the use of chained CPI.

To many seniors, their inflation-protected Social Security benefit is the only thing that stands between having to choose between buying food and medicine. The flawed rationale behind the proposed switch also doesn’t take into account the fact that many seniors can’t just switch medical treatment like they could with beef and chicken.

AFGE is cautiously optimistic and continues to urge the White House not to use the livelihood of seniors and veterans as a bargaining chip in deficit reduction negotiations with extremist lawmakers.

Read more at about Chained CPI at Politico.com.


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