New bill on Capitol Hill aims to enhance Social Security benefits for seniors: What you need to know

A study published by the Senior Citizens League (SCL), an organization that advocates for economic justice for seniors, found that since 2000, Social Security benefits have lost “over thirty percent of their purchasing power [...] due in large part to inadequate COLAs [Cost-of-living adjustment] and rising health care costs.” The organization has called on Congress to address the issue by creating a Consumer Price Index for the Elderly (CPI-E) to measure better how price changes affect the goods and services most commonly consumed by seniors. The SCL constantly contacts seniors and often surveys them on their economic well-being.

In December, the organization reported on a survey that “more than two-thirds of older adults say their monthly budget for essential items such as housing, food, and prescription drugs is 10 percent higher than one year ago.” When Social Security benefits cannot cover the rapidly increasing food and medication costs, for example, there can be severe consequences as some seniors eat less or ration their medications. Social Security was established to ensure that workers and their families could retire with dignity, and the SCL’s findings remind us that this mission is slipping away for many older Americans.

However, the ‘Boosting Benefits and COLAs for Seniors Act’ would address the issues highlighted by activists with the current measure used to calculate the annual Cost-of-living adjustment (COLA). Arizona Congressman Ruben Gallego introduced the bill to the House of Representatives after Senator Bob Casey (D-PA) had drafted it.

In the Senate, the bill has been co-sponsored by Sen. Richard Blumenthal (D-CT), Sen. Peter Welch (D-VT), Sen. John Fetterman (D-PA), Sen. Kirsten E. Gillibrand (D-NY), and Sen. Bernie Sanders (I-VT). The bill has a better chance of passing in the Senate, where Democrats currently hold a slim majority. However, bringing the bill to a vote in the House is next to impossible, with the GOP controlling what pieces of legislation the chamber’s members will vote on.

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What would the new law require?

If the bill is passed into law, it would require the establishment of a CPI-E and its use to determine the annual COLA. The CPI-E will be used if it results in a larger benefit increase than the current CPI for Urban Wage Earners and Clerical Workers (CPI-W), which is currently used for the same purpose. Additionally, the Bureau of Labor Statistics would be required to publish monthly Consumer Price Index reports on the CPI-E, just as it currently does for the other variations of the CPI that examine price differences for different baskets of goods and services.