By Forum Staff
U.S. Sen. Charles Schumer (D-N.Y.) this week urged his colleagues to pass a piece of legislation that would provide a one-time payment of $581 to Social Security recipients who were denied a cost of living adjustment in 2016.
Even though living expenses continue to increase, Schumer also noted that New Yorkers recently learned that they would only be receiving a $5 monthly COLA increase—or 0.3 percent—for 2017. The slight increase will benefit over 65 million people, according to the U.S. Social Security Administration; but it’s the second-lowest positive adjustment since the economy emerged from the 2008 recession.
The Empire State’s senior senator said that both sides of the aisle need to work to improve the meager bump.
“There is nothing worse than delivering a flat Social Security COLA to our seniors,” Schumer said. “Millions of New York City seniors, veterans, and individuals who are disabled, need and deserve a fairer amount of money in their Social Security checks to help pay for the ever-increasing cost of rent, medicine and groceries. After a year with no cost-of-living increase, Social Security recipients will only receive an additional $5 each month next year, a paltry amount with which one can only do so much. New Yorkers and all the millions around the country who depend on Social Security need more than a mere $5 increase in order to keep up with living expenses. Congress needs to explore options to make Social Security benefits reflect current spending patterns. In the meantime, too many are in a vulnerable position and that’s why I am pressing my colleagues to support the Seniors and Veteran Emergency Benefits Act, which would provide a one-time $581 payment to Social Security recipients to help make up for their lost dollars.”
The purpose of COLA is to ensure that the purchasing power of Social Security benefits is not eroded by inflation, according to the SSA.
Schumer said he blamed a flawed funding formula used by the federal government to determine COLA increases. Lower gas prices, which do relatively little to help the disabled and elderly, who don’t drive as much as the general population, the senator noted, are largely to blame for the low increase in benefits. Schumer characterized the situation as unfair, because several other cost of living indicators – groceries, medicine and rent – are increasing, and these items impact seniors on fixed incomes in particular, he reasoned.
Schumer said the SAVE Benefits Act, which was introduced by Sen. Elizabeth Warren (D-Mass.), would:
- provide a one-time check of approximately $581 for seniors and other Social Security recipients, like individuals with disabilities and veterans, to help them make ends meet;
- and fully pay for this one-time check by closing a loophole that benefits corporate compensation packages of over $1 million
The last time there was no COLA increase was in 2015; there was also no increase in 2009 or 2010, Schumer noted. However, in 2009, in the midst of the recession, Congress provided a one-time $250 payment to Social Security recipients “to help them get through tough times,” he said.
