COMMITTEE on WAYS and MEANS

Chairman Dave Camp

Print this Page Social Security Watch

FACT: Chained CPI Would Result In a Larger COLA Increase for 2014

f t # e
Washington, Nov 4, 2013 | comments
MYTH:
“Chained CPI would cut the 2014 Social Security cost-of-living increase of 1.5 percent to 1.2 percent.” - Robert Romasco, president of AARP
 
FACT:
If the more accurate chained CPI was used to determine the 2014 cost of living increase, seniors would see a 1.7 percent increase as opposed to this year’s increase of 1.5 percent.  What does a 1.7 percent increase mean?  On average, that is an extra $21.60 each month for seniors to use on groceries, bills and medicine.

Initial* estimate for the third quarter of 2012:    131.910
Initial estimate for the third quarter of 2013:  134.096
COLA using initial 2012 versus initial 2013:   1.7 percent

*According to the Congressional Budget Office, using the initial measurements incorporate updates to previous released measures through past months’ interim and final releases.  
                                                       
###
f t # e