Larson Statement After SSA Announcement of 1.6 Percent Benefit Increase

Hartford, CT – Today, Rep. John B. Larson (CT-01), Chairman of the Ways and Means Social Security Subcommittee, released the following statement after the Social Security Administration (SSA) announced that there will be a 1.6 percent cost-of-living-adjustment (COLA) for Social Security benefits received beginning in January 2020.

"Today's announcement of a 1.6 percent Social Security cost-of-living adjustment affects 63 million seniors, people with disabilities, and others who count on Social Security. The annual COLA is one of Social Security's most important protections – and something that is unmatched by any insurance policy you could buy on the private market," said Larson. "However, the reality is that most seniors face cost increases each year even beyond what's reflected in the current law COLA, since they spend a disproportionate amount of their income on health care costs, which rise faster than general inflation. It's time to fix that. My bill, the Social Security 2100 Act, H.R. 860, would strengthen the COLA by by replacing the current COLA with a new COLA based on the CPI-E, reflecting what seniors actually spend such as food, gas, housing and medical expenses. Under the CPI-E, a retiree or widow would experience benefits that are 6% higher by the time she reaches age 90.

For the majority of seniors, Social Security is their main source of income. Social Security already provides modest benefits, and is of great importance to low wage earners, women and people of color. For many Social Security is their only retirement or disability plan. The Social Security 2100 Act, which has the support of 209 cosponsors, would provide a much-needed benefit bump, improve the COLA, ensure that no one who worked throughout their lifetime would retire into poverty, cut taxes for millions of working seniors, and strengthen Social Security for generations to come. This is an issue of great urgency that needs to be addressed. We must do better for our seniors."