Queens politicians outraged over Social Security COLA freeze

By AnnMarie Costella
Queens Chronicle
September 10, 2009

With the cost of healthcare, housing, prescription drugs and transportation increasing, news that Social Security benefits will remain stagnant may make difficult times even worse for seniors.

Due to the recession and the formula used to calculate benefit increases, federal officials are predicting that the annual cost of living allowance, or COLA, will remain flat for 2010 and 2011. This would be the first time since 1976 that there would not be an increase.

The Social Security Administration and its trustees base the COLA amount on the rate of inflation, or consumer price index. Currently, the average monthly social security payment is approximately $1,155.

Recognizing that the formula does not reflect the rising costs of all goods and services, Rep. Anthony Weiner (D-Queens and Brooklyn) is sponsoring legislation to help alleviate some of the burden.

"To say that the costs for seniors will not go up for two years is to pretend that the laws of economic gravity don't apply to seniors," Weiner said in a prepared statement. "Rent is up. Food prices are up. Bus and subway fares are up. Healthcare costs are up. The purpose of COLA is to keep up. The Social Security Administration seems to have forgotten that mission."

Indeed, the cost of food has risen by 1.4 percent since last year, according to the Bureau of Labor Statistics. Also, seniors are paying 10 percent more for subway and bus fares and 6 percent more to lease a rent controlled apartment.

Weiner's bill, called the COLA Fairness Act, would create a regional cost of living adjustment, thereby preventing seniors from being penalized just because they live in expensive areas like New York City. The Bureau of Labor Statistics would set up 14 regions throughout the country and calculate a consumer price index for each of those regions.

If passed, the bill is expected to increase Social Security benefits for New Yorkers by a total of 2.1 percent over the next five years, according to Weiner's office.

State Assemblywoman Nettie Mayersohn (D-Flushing) and Sen. Toby Ann Stavisky (D-Flushing) both expressed their support for the federal legislation.

"Inflation may not be rising, but to pretend that the expenses of daily life are not is naive," Mayersohn said in a news release. "Seniors should not have to choose between eating and paying their rent."

In a letter to Social Security Administration Commissioner Michael Astrue the three politicians reiterated their dissatisfaction over the COLA freeze.

"[We are] writing to express disbelief and concern about recent reports that there will be no Social Security cost of living increases for 2010 and 2011," they said. In addition, they called the formula for calculating the increase "unfair and inaccurate."

Approximately 50 million Americans including seniors and those with disabilities collect Social Security benefits, and for many it is their sole means of income.

With this in mind, Sen. Bernie Sanders (I-Vermont) plans to introduce "emergency legislation," which would provide financial assistance to seniors affected by the COLA freeze, although the exact details of the legislation have yet to be announced.

A spokeswoman for Weiner, said that he supports the concept of the one-time increase proposed by Sanders, but still plans to work diligently to pass the COLA Fairness Act, which he said would have more long-term benefits.

After hearing about the freeze, Harding Dunlop, the executive director of Alpha Phi Alpha senior center in Cambria Heights, said he plans to discuss the issue with the members of his facility over the coming days, especially since many of them have already expressed difficulties making ends meet using the Social Security funds that they currently receive.

"Despite the fact that this is a time of no inflation, the lack of a COLA increase would adversely affect seniors," Dunlop said. "Medicine and medical care are always going up, and to that extent it negatively impacts the lives of seniors. It dovetails into the need for a comprehensive healthcare package that will help both seniors and non-seniors in our American population."

Lucy Garcia, the director of the Elmhurst Senior Center Institute for the Puerto Rican / Hispanic Elderly has seen firsthand how living on a fixed income affects older adults. Membership has increased as more seniors are taking advantage of the center's $1 lunch program. In addition, Garcia says many seniors have told her that with prescription co-pays increasing, they often have to choose between buying food and getting medication.

"Even a $20 increase, would at least help them buy food," Garcia said.

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