A proposed bill, the Boosting Benefits and COLAs Act, aims to enhance the calculation of the yearly cost-of-living adjustment (COLA) for Social Security benefits. The bill seeks to replace the current Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) with the Consumer Price Index for Elderly Consumers (CPI-E) in determining the COLA adjustment. The CPI-E more accurately reflects the inflation experienced by seniors, who often face higher healthcare and other expenses compared to the general population. The current CPI-W may underestimate these rising costs, resulting in inadequate COLA adjustments. By using the CPI-E, the proposed bill aims to ensure that Social Security benefits keep pace with inflation, allowing seniors to maintain their standard of living. This issue is particularly relevant as seniors often rely heavily on Social Security benefits for their income. The bill, introduced by Arizona Representative Ruben Gallego and Pennsylvania Senator Bob Casey, has received support from organizations representing retirees. They argue that the current COLA calculation method does not adequately account for the inflation seniors experience in healthcare costs. The bill, if passed, would apply to determinations made with respect to cost-of-living computation quarters ending on or after September 30, 2024. The Boosting Benefits and COLAs Act underscores the need to address the unique challenges faced by seniors and ensure that their Social Security benefits remain a reliable source of support in retirement.
Proposed Bill Aims to Enhance Social Security COLA Calculations for Retirees
dev
