YOUNGSTOWN, OH — Today, U.S. Sen. Sherrod Brown (D-OH) announced his support for a bill that would increase benefits for seniors and extend the solvency of the Social Security Trust Fund, which nearly two in three Americans rely on for at least half of their income in old age.

“Seniors have spent a lifetime paying into Social Security, but as the cost of living continues to rise, the budgets of many are stretched to the breaking point,” Brown said. “That is why Congress needs to do more to ensure that our seniors receive the benefits they’ve earned so that they can continue to retire with dignity. The Strengthening Social Security Act of 2013 would do this by expanding benefits, strengthening the program’s future, and making retirement more secure for all Americans.”    

At the Senior Independence Senior Center of Mahoning County, Brown outlined his support for the Strengthening Social Security Act of 2013, legislation which would:

Strengthen Benefits by Reforming the Social Security Benefit Formula: The bill would change the method by which the Social Security Administration (SSA) calculates Social Security benefits. This change will boost benefits for all Social Security beneficiaries by approximately $70 per month, but is targeted to help those in the low and middle of the income distribution, for whom Social Security has become an ever greater share of their retirement income. 

Ensure that Cost of Living Adjustments Adequately Reflect the Living Expenses of Retirees: the bill would change the way the Social Security Administration calculates the Cost of Living Adjustments (COLA). Currently, the annual adjustment is tied to the Consumer Price Index (CPI) for all Urban Wage Earners (CPI-W) for the purposes of calculating inflation. However, the CPI-W is based on a basket of goods that does not adequately track the purchases of seniors. For example, unlike younger working age Americans, retirees spend significantly more on medical care, whose costs have been rising much more quickly in recent years. As a result, to ensure that benefits better reflect cost increases facing seniors, future COLAs will be based on the CPI for the Elderly (CPI-E). The CPI-E is an experimental index that the Bureau of Labor Statistics (BLS) has been keeping since 1982. Making this change to Social Security is expected to result in higher COLAs, ensuring that seniors are able to better keep up with the rising costs of essential items, like prescription drugs. 

Improve the Long Term Financial Condition of the Trust Fund: Social Security is not in crisis, but does face a long-term deficit. According to the most recent Social Security Trustees report, the Trust Fund will be able to pay full benefits through 2033, or another 20 years. To help extend the life of the trust fund, and decrease the 75 year actuarial deficit, the legislation would phase out the current taxable cap of $113,700 and instead ask the wealthiest Americans to contribute to the program the same share of their income as the middle class. In order to minimize the burden on employers, this change would be phased in over a five year period.

Brown was joined by Norm Wernet, the President of the Ohio Alliance for Retired Persons, who discussed the importance of this legislation and ensuring Senior Social Security benefits are not cut.   

“The Ohio Alliance for Retired Americans is excited to stand with Senator Brown as he announces his co-sponsorship of the Strengthen Social Security Act of 2013,” Wernet said. “This is good legislation that strengthens our Social Security while improving the economic and retirement security of millions of Americans. By phasing out the earnings cap on contributions, this legislation extends the life of the Trust fund and increases benefits by about $800 per year. By using a more accurate cost of living adjustment formula, the CPI-E, the bill helps Social Security beneficiaries keep up with their daily needs.”

Brown was also joined by Juanita James, the Co-Chair of the Alliance for Senior Action in Trumbull County; and Gloria Hobbs, a Mahoning Valley resident dependent upon Social Security who would benefit significantly from passage of the Strengthening Social Security Act of 2013.

The bill is currently endorsed by the American Federation of Labor and Congress of Industrial Organizations (AFL–CIO); American Federation of State, County and Municipal Employees (AFSCME); Alliance for Retired Americans; Campaign for Community Change; National Organization for Women (NOW); the National Education Associate (NEA); Paralyzed Veterans of America; Strengthen Social Security Coalition; Social Security Works; United Autoworkers (UAW), and United Steelworkers (USW).

Today’s press conference comes on the heels of last week’s announcement by the U.S. Social Security Administration (SSA) that monthly Social Security and Supplemental Security Income (SSI) benefits will increase by 1.5 percent in 2014, benefiting nearly 63 million Americans. Brown responded that while more than two million Ohioans will see their Social Security benefits increase next year, many seniors are still struggling to make ends meet and that Congress needs to do more to ensure that seniors can continue to retire with dignity.  

In 2011, Brown joined the National Committee to Preserve Social Security and Medicare (NCPSSM) to announce the Consumer Price Index for Elderly Consumers Act. The legislation would change the COLA formula for Social Security to more accurately reflect the expenses of senior citizens. Because of the method by which inflation is calculated, seniors and other Social Security recipients did not receive a COLA in 2010 and 2011, even though the price of prescription drugs, food, energy, and other necessities continued to rise.

###