From: The Honorable Michael M. Honda
Sent By:
alice.lin@mail.house.gov
Bill: H.R. 3351
Date: 4/26/2016
Current Co-Sponsors: Ellison, Grayson, Lawrence, Garamendi, Conyers, Sablan, Grijalva, Ruppersberger, Cicilline, Cartwright, Loebsack, Cummings, Pingree, Brady, Pocan, Johnson (GA), Slaughter, Higgins, Fattah, Boyle, McCollum, Welch, Cohen, Watson Coleman, Schakowsky, Waters, Hastings, Clarke, Takano, McNerney, Yarmuth, Norcross, Swalwell
Supporting Organizations: Social Security Works (SSW), Strengthen Social Security Coalition, National Committee to Preserve Social Security and Medicare, Justice in Aging, Alliance for Retired Americans, American Federation of State, County and Municipal
Employees (AFSCME), National Active & Retired Federal Employees Association (NARFE), Older Women’s League (OWL), Association of Jewish Aging Services, Bay Area Community Services, Santa Clara & San Benito Counties Building and Construction Trades Council,
Asian Americans for Community Involvement (AACI)
Employees (AFSCME), National Active & Retired Federal Employees Association (NARFE), Older Women’s League (OWL), Association of Jewish Aging Services, Bay Area Community Services, Santa Clara & San Benito Counties Building and Construction Trades Council,
Asian Americans for Community Involvement (AACI)
Dear Colleague,
Please join me as a CoSponsor in legislation that responds to the rising expenditures for our elderly.
The CPI-E Act of 2015 (HR 3351) proposes the use of the Consumer Price Index for the Elderly (CPI-E) to calculate cost of living adjustments (COLAs) for federal retirement programs. The consumption patterns of seniors are different from those of younger people. Using the CPI-E will ensure that benefits for retirees are not diluted by disproportionately rising costs in sectors affecting seniors. The proposed index would adjust the benefits programs such as Social Security, Supplemental Security Income, civil service retirement, military retirement, veterans’ pensions and compensations, and other retirement programs.
The CPI-E is the most accurate and balanced measure of the real costs that seniors face in retirement. Current measures do not adequately take into account the rising expenditures of retirement, such as housing and healthcare costs. This
inadequate accounting amounts to an effective decrease in benefits for those who rely on these federal programs. The proposed change will lead to increased COLAs, ensuring that seniors are able to keep up with the rising costs of their real world expenses.
This provision reflects the sense that the benefits structure of all federal retirement programs should assume inflation and costs are realistic.
inadequate accounting amounts to an effective decrease in benefits for those who rely on these federal programs. The proposed change will lead to increased COLAs, ensuring that seniors are able to keep up with the rising costs of their real world expenses.
This provision reflects the sense that the benefits structure of all federal retirement programs should assume inflation and costs are realistic.
From December 1982 through December 2011, the CPI-E rose at an annual average rate of 3.1 percent, compared with increases of 2.9 percent for both the CPI-U and CPI-W. This suggests that the elderly have been losing purchasing power at the rate of roughly
0.2 percentage points per year by federal retirement programs not using the CPI-E. In 2013, national health care spending in the United States averaged $9,255 per person, an 89.5 percent increase than the amount in 2000.
0.2 percentage points per year by federal retirement programs not using the CPI-E. In 2013, national health care spending in the United States averaged $9,255 per person, an 89.5 percent increase than the amount in 2000.
Programs that will be improved through the CPI-E Act of 2015:
• Civil Service Retirement System
• Old-age, survivors, or disability insurance under Social Security
• Federal Employees’ Retirement System
• Department of Veterans Affairs wartime disability compensation
• Department of Veterans Affairs additional compensation for dependents, clothing allowance, and indemnity and dependency compensation for dependents and surviving spouses
• Military retirement and survivor benefit programs
The CPI-E Act of 2015 will replace the inappropriate indices currently being used by federal retirement programs with the CPI-E, which is tailored specifically to better reflect seniors’ consumption patterns. Seniors depend on these programs and deserve
to be treated fairly. Please join me in supporting our retirees by supporting the CPI-E Act of 2015. If you would like to become a cosponsor or have any questions, please contact Alice Lin at Alice.Lin@mail.house.gov.
to be treated fairly. Please join me in supporting our retirees by supporting the CPI-E Act of 2015. If you would like to become a cosponsor or have any questions, please contact Alice Lin at Alice.Lin@mail.house.gov.
Sincerely,
Michael M. Honda
Member of Congress