For those who believe the President supports chained CPI [View all]

[michigandem58]

Last edited Sun Apr 14, 2013, 05:14 PM - Edit history (1)

http://www.whitehouse.gov/omb/budget/factsheet/chained-cpi-protections

The Budget contains the President’s compromise offer to Speaker Boehner from December. As part of that offer, the President was willing to accept Republican proposals to switch to the chained CPI. But, the Budget makes clear that the openness to chained CPI depends on two conditions. The President is open to switching to the chained CPI only if:

•The change is part of a balanced deficit reduction package that includes substantial revenue raised through tax reform.

•It is coupled with measures to protect the vulnerable and avoid increasing poverty and hardship.
The Budget contains two types of protections:

Benefit Enhancement for the Very Elderly and Others Who Rely on Social Security for Long Periods of Time

•The benefit enhancement would be equal to 5% of the average retiree benefit, or about $800 per year if the proposal were in effect today.

•It would phase in over 10 years, beginning at age 76, or (for other beneficiaries, such as those receiving Disability Insurance) in the 15th year of benefit receipt.

•The benefit enhancement would begin in 2020, phasing in over 10 years for those 76 or older (or in their 15th year of eligibility or beyond) in that year.

•Beneficiaries who continued to be on the program for an additional 10 years would be eligible for a second benefit enhancement, starting at age 95 in the case of a retired beneficiary.
Because of the benefit enhancement for the very elderly, the Budget proposal would not increase the poverty rate for Social Security beneficiaries, and would slightly reduce poverty among the very elderly according to SSA estimates.

Policy is Not Applied to Means-Tested Benefit Programs

Means-tested benefit programs are not included in the switch to the chained CPI. Programs that would not be included are:

•The Supplemental Security Income (SSI) program, meaning that the lowest-income seniors and people with disabilities generally would not be affected.
•Means-tested veterans’ pensions as well as the Montgomery GI Bill-active duty or the post-9/11 GI Bill benefits.
•The Supplemental Nutrition Assistance Program (SNAP) and child nutrition programs.
•Pell Grants.
•Poverty guidelines.