Sen. Casey Applauds Obama Call for Social Security COLA

Last month, Sen. Casey endorsed legislation to provide a $250 payment

October 14, 2009 -- WASHINGTON, DC -- U.S. Senator Bob Casey (D-PA) today welcomed the support of President Obama for legislation to provide a one-time payment of $250 to Social Security recipients to offset the expected lack of a cost-of-living adjustment (COLA). Last month, Senator Casey cosponsored the Emergency Senior Citizens Relief Act that would provide such a payment to Social Security recipients.

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“I am pleased that the President has endorsed this approach and hope that his leadership will help pass this legislation to help Social Security recipients,” said Senator Casey. “The economy has kept the Consumer Price Index down, but it hasn’t stopped medical costs from going up and pension accounts and home values from going down. Without action, those living on fixed incomes will be faced with a greater burden.”

Social Security COLAs are by law determined by the Consumer Price Index. Because of the current economic conditions, there will likely be no Social Security COLA for the first time since 1975.

A final decision from the Social Security Trustees is expected on Thursday. However, since the Consumer Price Index is below the index from last year, the expectation is that there will be no Social Security increase.

Nearly 70 percent of beneficiaries depend on Social Security for at least half of their income and Social Security is the sole source of income for 15 percent of recipients.

Source: Senator Bob Casey