As a part of fiscal negotiations, President Obama has offered to calculate both veterans and Social Security benefits with a “Chained CPI,” which would involve huge cuts to both programs.
Seventeen different veterans organizations wrote an open letter to Congress opposing this change last week, before Obama endorsed it. The full letter is below as well as the different organizations that have endorsed it:
As efforts to address our nationai??i??s debt continue, we are writing to express our opposition toAi??changing the formula used to calculate the annual cost of living adjustment (COLA) because of
the harmful effects it will have on veterans and Social Security benefits.Ai??The Congressional Budget Office estimates that adopting the chained consumer price indexAi??(CPI) to calculate annual COLAs could save the government $208 billion over ten years byAi??reducing Social Security, disability, and other benefits, and by increasing revenues. More thanAi??half of this amount ai??i?? $112 billion ai??i?? would come from Social Security cuts, which veterans relyAi??on very heavily for both retirement and disability benefits. Another 11 percent of the savings ai??i??Ai??$24 billion ai??i?? would come from VA benefits, civilian pensions, and military retirement pay.Ai??We estimate that use of the chained CPI would have a significant effect on benefits that millionsAi??of veterans depend on in the following ways:Ai??Social Security Retirement Benefits: Social Security is one of our nationai??i??s most important
programs serving veterans and their dependents and survivors. It currently pays benefits to overAi??9 million veterans ai??i?? about 4 in 10. The average retirement benefit of a veteran receiving Social
Security was about $15,500 in 2010. Adopting the chained CPI would significantly reduceAi??those benefits, by changing the manner in which COLAs are determined. A veteran with
average earnings retiring at age 65 would get nearly a $600 benefit cut at age 75, …