LARSON: This Year’s COLA is Good News, but More Can be Done
Washington, D.C. – Today, the Social Security Administration (SSA) announced that there will be a much-needed two percent increase in the Cost of Living Adjustment (COLA) for Social Security benefits beginning in January 2018. Rep. John B. Larson (CT-01), Ranking Member of the Ways and Means Social Security Subcommittee, released the following statement:
“Today’s announcement of a 2% Social Security cost-of-living adjustment is good news for seniors, however more must be done since earned benefits from Social Security provides the majority of income for two-thirds of retirees, ” said Larson. “Seniors have been seeing rises in food, gas, housing, and medical costs, without always seeing adequate increases in the COLA. That’s why I am proposing that we adopt a new COLA formula known as CPI-E, which better reflects the expenses seniors face.
“The Social Security 2100 Act would not only adopt a more accurate COLA formula, but it would also provide a much-needed benefit bump to today’s seniors, and strengthen Social Security through the end of the century and for generations to come.”
The COLA is set according a formula in the Social Security Act based on the increase in the Consumer Price Index (CPI) as determined by the Department of Labor’s Bureau of Labor Statistics. The COLA for 2017 was 0.3 percent.