Congressman McGovern Calls for Swift Passage of Social Security COLA Bill

Washington, DC, October 13, 2010

U.S. Rep. Jim McGovern (D-MA) today called on the House Leadership to bring H.R. 5987, -The Seniors Protection Act of 2010,- to the floor for swift passage as soon as Congress reconvenes. Rep. McGovern is a co-sponsor of the bill, introduced by U.S. Rep. Earl Pomeroy (D-ND).

According to recent news reports, on October 15 Social Security will likely announce (because of a long-standing statutory formula) that there will not be a cost-of-living-adjustment (COLA) next year. H.R. 5987 would provide a one-time payment of $250 in the event that no COLA is payable in 2011.

-Our seniors did not cause the financial crisis and the resulting recession - Wall Street greed and bad Republican policies did,- Rep. McGovern said. -And seniors should not be forced to go without a COLA. I urge the House Leadership to take up H.R. 5987 as soon as possible in order to give our seniors some peace of mind.-

Social Security benefit levels are quite modest - only $14,000 a year for the average retiree. Yet, the median income for senior households is a mere $24,000, reflecting just how much Social Security means to most elderly Americans. Six in ten seniors rely on Social Security for more than half of their income. About a third of retirees have little other than Social Security to live on.

Seniors' other sources of income have weakened as a result of the economic downturn: the financial collapse reduced the value of their IRAs; interest rates are low, reducing income from seniors' savings; and the housing crash reduced seniors' home equity. The one-time $250 payment for retirees and other beneficiaries would represent less than two percent of the average annual Social Security benefit.

-Just because the technical formula shows that a COLA is not warranted, that doesn't mean that too many of our seniors aren't struggling to make ends meet,- Rep. McGovern said. -Passing this bill is the right thing to do.-

H.R. 5987 has been endorsed by the National Committee to Protect Social Security and Medicare and the Alliance for Retired Americans.