Keeping Watch Over Congress
(This article appeared in the March/April 2013 edition of The American Postal Worker.)
Judy Beard, Director Retirees Department
It seems that with each new Congress, bills are introduced that would balance the nation’s budget on the backs of retirees.
It’s our job to tell our legislators that seniors did not cause the deficit, and we should not be forced to pay for it. Until our political leaders resolve the nation’s lingering fiscal debates, we will have to remain vigilant. We must be ready to stand up for our rights and make our voices heard.
One proposal that would have a devastating impact on retirees is the plan to change the formula for calculating cost-of-living adjustments (COLAs). Changing the formula from the CPI-W (Consumer Price Index for Wage and Clerical Workers) to the “chained-CPI” would reduce COLAs for federal and postal retirees, as well as Social Security beneficiaries.
Many of our retired members may recall that we did not receive COLAs in 2010 and 2011, when the nation was in the grip of a severe recession. The absence of COLAs strained our wallets and made it difficult to afford the basics, such as food, medicine, and energy.
Silent No More
Retirees cannot afford to be the silent victims of budget cuts that would reduce our income. After all, we worked for many years — we deserve to enjoy our later years with financial security and peace of mind.
If the chained-CPI formula becomes law, it would be devastating to seniors. It would result in an immediate annuity cut for retirees, who need an increase in COLAs, not a decrease.
Those who advocate replacing the existing COLA formula with the chained-CPI formula argue that the current consumer price index overstates inflation. This is simply not true, especially for seniors.
A case in point is healthcare, which is one of the factors used to calculate the cost of living. Healthcare costs are not given proper weight when calculating the adjustments seniors need to keep pace with inflation. That’s because seniors typically spend a much greater portion of our income on healthcare than younger households do – and the cost of healthcare has been rising much faster than other costs.
If Congress wants to make a change in cost-of-living calculations, the fairest way to do it would be to change the formula for seniors to the CPI-E (Consumer Price Index for the Elderly) formula. This would increase seniors’ income.
Ask any postal retiree impacted by the Government Pension Offset (GPO) and Windfall Elimination Provision (WEP) how they feel about being deprived of the Social Security income they were promised, and they will tell you that it has shattered their finances. The chained CPI also would wreck our budgets.
APWU leaders and retired members, as well as the Alliance for Retired Americans and the AARP, have publicly opposed the use of the chained-CPI. Cutting the annuities of retirees should not even be considered during deficit reduction talks.
Contact your congressional representatives today!
May: Older Americans Month
For the last five years, the APWU has joined millions of Americans celebrating Older Americans Month, which honors seniors and their ongoing contributions. The tradition of honoring seniors in May dates back to 1963. According to the Administration on Aging, the theme for this year is Unleash the Power of Age.
The APWU National Executive Board is asking all union members to take some time during the month of May to thank former union members for their role in building the APWU and/or their military service to our country, as well as for their valued contributions to their families, communities, and the young adults who have followed their leadership as union activists.