NARFE Endorses Legislation to Provide Older Americans With Accurate COLAs


ALEXANDRIA, Va. (March 7, 2019) – With annual cost-of-living adjustments (COLAs) for certain retirement benefits not reflective of older Americans’ spending habits, the National Active and Retired Federal Employees Association (NARFE) today applauds the introduction of the Fair COLA for Seniors Act by Rep. John Garamendi, D-CA. NARFE National President Ken Thomas issued the following statement:

“Millions of retired public servants, veterans and older Americans have been shortchanged on their hard-earned financial security and quality of life due to an antiquated method used to calculate their COLAs. The Fair COLA for Seniors Act amends a complex calculation with a simple and equitable update, righting a wrong for many who rely on Social Security as part of modest, fixed incomes in their golden years. We commend Congressman Garamendi for taking the lead on this issue and urge Congress to quickly pass this legislation.”

Background:
Currently, COLAs for federal and military annuities, Social Security benefits and veterans’ benefits are based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The CPI-W, as its name suggests, measures the costs of consumer goods experienced by urban wage earners and clerical workers. The Fair COLA for Seniors Act would require the calculation of these COLAs to be based on the Consumer Price Index for the Elderly (CPI-E), which more accurately measures costs of consumer goods experienced by individuals age 62 and above, a group that relies more on medical care, pricing of which has far outpaced the price increases for other consumer goods.

When Congress first made COLAs automatic in 1972, the CPI-W was the only price index available for use. The Bureau of Labor Statistics (BLS) has been calculating the CPI-E since 1982.


                                                                       # # # 

The National Active and Retired Federal Employees Association (NARFE), one of America’s oldest and largest associations, was founded in 1921 with the mission of protecting the earned rights and benefits of America’s active and retired federal workers. The largest federal employee/retiree organization, NARFE represents the interests of 5 million current and future federal annuitants, spouses and survivors.

CONTACT:
Jill Talley
NARFE Deputy Director, Public Relations
jtalley@narfe.org
(703)838-7760


 

National Active and Retired

FEDERAL EMPLOYEES Association

NARFE (National Active and Retired Federal Employees Association) 606 N. Washington St., Alexandria, VA 22314, Phone: (703) 838-7760, Fax: (703) 838-7785.

 

This is the only website that reflects the official opinions and positions of the National Active and Retired Federal Employees Association (NARFE). Opinions and/or positions that appear on any other site bearing NARFE's name or seal are not necessarily those of NARFE. Click here for Privacy Statement.   NARFE has been certified by Dun & Bradstreet.

NARFE Endorses Legislation to Provide Older Americans With Accurate COLAs


ALEXANDRIA, Va. (March 7, 2019) – With annual cost-of-living adjustments (COLAs) for certain retirement benefits not reflective of older Americans’ spending habits, the National Active and Retired Federal Employees Association (NARFE) today applauds the introduction of the Fair COLA for Seniors Act by Rep. John Garamendi, D-CA. NARFE National President Ken Thomas issued the following statement:

“Millions of retired public servants, veterans and older Americans have been shortchanged on their hard-earned financial security and quality of life due to an antiquated method used to calculate their COLAs. The Fair COLA for Seniors Act amends a complex calculation with a simple and equitable update, righting a wrong for many who rely on Social Security as part of modest, fixed incomes in their golden years. We commend Congressman Garamendi for taking the lead on this issue and urge Congress to quickly pass this legislation.”

Background:
Currently, COLAs for federal and military annuities, Social Security benefits and veterans’ benefits are based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The CPI-W, as its name suggests, measures the costs of consumer goods experienced by urban wage earners and clerical workers. The Fair COLA for Seniors Act would require the calculation of these COLAs to be based on the Consumer Price Index for the Elderly (CPI-E), which more accurately measures costs of consumer goods experienced by individuals age 62 and above, a group that relies more on medical care, pricing of which has far outpaced the price increases for other consumer goods.

When Congress first made COLAs automatic in 1972, the CPI-W was the only price index available for use. The Bureau of Labor Statistics (BLS) has been calculating the CPI-E since 1982.


                                                                       # # # 

The National Active and Retired Federal Employees Association (NARFE), one of America’s oldest and largest associations, was founded in 1921 with the mission of protecting the earned rights and benefits of America’s active and retired federal workers. The largest federal employee/retiree organization, NARFE represents the interests of 5 million current and future federal annuitants, spouses and survivors.

CONTACT:
Jill Talley
NARFE Deputy Director, Public Relations
jtalley@narfe.org
(703)838-7760


 



JOIN NOW!


Renew now!



NARFE (National Active and Retired Federal Employees Association) 606 N. Washington St., Alexandria, VA 22314, Phone: (703) 838-7760, Fax: (703) 838-7785.

 

This is the only website that reflects the official opinions and positions of the National Active and Retired Federal Employees Association (NARFE). Opinions and/or positions that appear on any other site bearing NARFE's name or seal are not necessarily those of NARFE. Click here for Privacy Statement.   NARFE has been certified by Dun & Bradstreet.