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  [link removed] Insider's Report: Cost-of-Living Adjustment Could Be Zero in 2021 

 

We're raising an early alarm on next year's Social Security Cost-of-Living
Adjustment (COLA)!While the Social Security Trustees estimate that the COLA for 2021 will be 2.3%,
that projection does not reflect the impact of the coronavirus pandemic on
inflation — and the actual COLA for next year could be much lower. The same
report estimates that the Medicare Part B premium will rise to $153.30 per month
in 2021, an $8.70 increase over last year's. If these projections hold true, the
2021 COLA increase will quickly be eaten up by rising prescription drug costs,
soaring food costs and other expenses.  

The health and financial security of millions of Americans depends on getting a
fair and accurate COLA next year and everyyear. With almost two-thirds of beneficiaries relying on Social Security for
over half their income, and the average retiree receiving modest benefits of
about $18,036 a year, the annual COLA is critically important to millions of
Americans, who need it just to maintain their standard of living and stay above
the poverty line.

Social Security beneficiaries deserve a COLA raise and
relief in their wallets. Yet, next year's projected 2.3% COLA (which again,
could end up being lower) means that millions of beneficiaries will once again
find their expenses outpacing their Social Security benefit. And it demonstrates
the complete failure of the current COLA formula to deliver a fairCOLA that accurately measures seniors' expenses, including higher out-of-pocket
health care and housing costs. (The Social Security Administration will issue its official COLA announcement
for 2021 in October.)  

That's why the National Committee is working on your behalf to convince
lawmakers to pass the "Fair COLA for Seniors Act (H.R. 1553)," [link removed] introduced by U.S. Representative John Garamendi (CA-03). This long overdue bill
would use the Consumer Price Index for the Elderly (CPI-E) for the purpose of
determining the Social Security COLA. Using the CPI-E will ensure that benefits
for retirees are not diminished by rising costs for the goods and services that
seniors disproportionately consume.  

At a time when many older Americans are struggling just to make ends meet,
Congress should act quickly to adopt a COLA formula that takes a more accurate
measure of seniors' expenses, which is the CPI for the Elderly (CPI-E). The
CPI-E has been in the experimental phase since 1982. It's time to finish the job
by fully funding the development of this more accurate COLA formula!   [link removed] Please consider becoming a member now [link removed] to help us keep the pressure on Congress. Your continued support is essential to
the National Committee's mission of protecting your earned benefits. ALERT: Medicaid Beneficiaries in Nursing Homes 

 

Some nursing home and assisted living facilities have tried to take the
Coronavirus Aid, Relief and Economic Security (CARES) Act payments intended for
residents on Medicaid by requiring them to sign over those funds to the
facility. Yet, according to the Federal Trade Commission, the economic impact payments are considered a tax credit [link removed] and pursuant to the law do not count as "resources" that can be seized by these
facilities just because a resident is on Medicaid.  

If you know of a resident who has had their CARES payment garnished by a nursing
care facility, contact your state attorney general [link removed] and ask for their help in getting it back.   Bad Proposal 

 

Following on the heels of President Trump's repeated calls to implement a
payroll tax cut, which would reduce revenue going into the Social Security Trust
Funds, the White House is now floating yet another outrageous idea [link removed] to undermine Social Security and jeopardize workers' future benefits.  

Senior White House officials are considering a plan that would allow Americans
to choose to receive checks of up to $10,000 in exchange for a delay of their
Social Security benefits. This is similar to another proposal [link removed] that Senator Marco Rubio (FL), Ivanka Trump and others have pushed in recent
years that would have sacrificed parents’ future Social Security benefits in
exchange for paid family leave. Both of these plans represent a gross misuse of
Social Security for purposes completely unrelated to its core purpose: providing
baseline retirement security for American workers.  

Americans should not be forced to mortgage their future Social Security benefits
in order to pay for rent, food and other expenses today. Yet, this bad proposal
is just the latest in a series of proposed assaults on Social Security,
including calls from White House advisors and so-called fiscal hawks in Congress
to cut payroll taxes, raise the retirement age, adopt stingier COLAs and slash
Social Security Disability Insurance (SSDI) by billions of dollars — along with
their insistence that Social Security be cut to pay for tax breaks that benefit
the very wealthy and big corporations.  

While the National Committee believes that Congress should pass additional
legislation that helps workers survive the coronavirus pandemic, both physically
and financially, earned Social Security benefits are sacrosanct and should only be available for
Social Security, period.   Poll Results! 

 

According to the 2020 Social Security Trustees Report, the Social Security Trust
Fund will be able to pay full benefits until 2035 and incoming payroll taxes
will be sufficient to pay 79% of scheduled benefits thereafter if Congress takes
no preventative action. Some lawmakers in Washington continue to use this modest
gap in long-term funding to justify proposals for large cuts in Social Security
benefits designed to reduce the federal deficit. Others believe this report
demonstrates the need for boosting Social Security's benefits and strengthening
the program’s fiscal solvency by requiring millionaires to pay their fair share
into the program.  

That's why I asked our readers the following question in the last issue of Benefits Watch:  

Which is a greater priority to you: Tackling the federal deficit, even if it
means cuts to Social Security, or boosting and strengthening Social Security?  

The results from our recent poll are fascinating, but they're only available to National Committee members! Join the National Committee today [link removed] and we'll immediately give you the results of this important poll.   Ask Us

 

Did you know that a team of experts in the field of Social Security policy is
available to answer your questions about benefits? For 37 years, the National
Committee has been helping thousands of our members and supporters with a broad
range of concerns on Social Security.

 

Whether you're currently retired or approaching retirement, the National
Committee's "Ask Us"section can help answer your questions about Social Security. You can either
search our archives for valuable advice on a broad range of concerns at www.ncpssm.org/ask-us-recent/ [link removed] or email your question to [email protected] mailto:[email protected]?subject=.

 

This week's question is: I turned 65 and my Social Security check was reduced $144.60 for Medicare
coverage. Will my next COLA increase be based on the amount of money I was
receiving prior to the Medicare reduction or the amount after the reduction?

 

Click here to read the answer. [link removed]   Recent Headlines

The Cash Advance Plan for Social Security [link removed]  (May 12, 2020, WSBA, Audio clip with Max Richtman)  

How Social Security Keeps Retirement Possible [link removed]  (May 18, 2020, WTPL, Audio clip with Max Richtman)  

Column: Republicans seek to exploit COVID-19 crisis to cut Social Security benefits [link removed]  (May 11, 2020, Los Angeles Times, Michael Hiltzik)  

YES, THE GOVERNMENT CAN CONTROL THE COST OF A CORONAVIRUS VACCINE [link removed]  (May 7, 2020, Newsweek, Ady Barkan)  

By Overturning The ACA, The Supreme Court Would Cut Taxes Substantially For High-Income Households [link removed]  (May 12, 2020, Forbes, Howard Gleckman)        
[link removed] [link removed] [link removed] [link removed] Member contributions to the National Committee, a nonprofit 501(c)(4)
organization, are not tax-deductible.

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