A new proposal in Congress seeks to increase monthly Social Security benefits by adjusting the calculation method for the annual Cost-of-Living-Adjustment (COLA). The Boosting Benefits and Cola for Seniors Act, proposed by Rep. Ruben Gallego (D-Arizona), would require the use of the Consumer Price Index for all Americans 62 years and older to set the yearly COLA change, replacing the current Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
“A monthly Social Security check is how most seniors make ends meet, we need it to pay our bills and pay for health co-pays and medications,” said Roman Ulman, president of AFSCME Arizona Retirees Chapter 97, in a statement from Gallego’s office. “The current annual Cost-of-Living-Adjustment (COLA) formula does not account for the inflation seniors see in health care costs. It’s important that the COLA reflects how inflation impacts seniors so that we can pay our bills and our monthly Social Security checks stays strong.”
COLA, first introduced in 1975, is determined by data from July, August, and September of each year. COLA in 2023 was increased to 3.2%, resulting in a $50 per month increase in Social Security benefits, according to al.com.
The AFL-CIO, the American Federation of State, County and Municipal Employees, and the Alliance for Retired Americans have endorsed Gallego’s bill. In the Senate, Sen. Bob Casey (D-Penn.) has introduced companion legislation, cosponsored by Sens. Richard Blumenthal (D-Conn.), Peter Welch (D-VT), and John Fetterman (D-Penn.).
This news comes after the Senior Citizens League, the nation’s largest nonpartisan senior advocacy group, increased its prediction for COLA in 2025 to 2.6%, up from 1.75% last month, according to a statement from the organization. The increase is attributed to the rise in the consumer price index, a measurement of the average change over time in the prices paid by urban consumers for a market basket of goods and services, according to the U.S. Bureau of Labor Statistics.
