Social Security

Sanders wants to change COLA calculation for Social Security 

Among other changes costing $100 billion over ten years, Bernie Sanders wants to change the CPI used to calculate the Social Security COLA from the CPI-W to the experimental CPI-E (elderly). The CPI-E puts greater emphasis on health care costs. 

This is supposed to increase the COLA. However, according to the Chief Actuary for Social Security, the average annual increase over the current measure will be 0.2% or two tenths of one percent and in some scenarios the proposed measure results in a lower COLA. 

  

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3 replies »

  1. From your chart, it looks like CPI-E would count food price increase for less in its formula. The complaints you get on this blog when there is no COLA usually use the price of food as examples of why the COLA is incorrectly calculated.

    As an aside, what is your preoccupation with Bernie Sanders? He has about a 2% chance of getting the Democratic nomination and 0% for the presidency. Hillary will be the nominee unless she is indicted which is when Biden or Bloomberg will ride to the rescue of the party.

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    • It’s not Sanders per se as much as the number of people who support what he says especially young people which I see as reflecting a dangerous attitude of entitlement and lack of understanding of history and the global world we live in. He offers simple and appealing non-solutions and the fact that so many people accept all that without considering the facts and consequences is disturbing to me. Even more so than the nonsense rhetoric on the right.

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  2. If it is not broke why try and fix it. I retired from the USAF in 1995. Monthly benefit then was $1,026, inflation calculator says it would need to be $1,595 to have the same buying power in 2016. Guess what B.S. it is $1,637 today even with a few years of zero COLA. I think we can find something else to spend $100 billion on. Or how about this novel idea, do NOT spend the $100 billion at all, feel the Bern. Lies, Damned Lies and Statistics will cost the taxpayers more every time.

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