Recently, the media has reported that some Washington politicians are prepared to permanently cut the Social Security COLA (Cost of Living Adjustment) as part of the debt ceiling negotiations. This is despite the fact that Social Security is an independent, “off-budget” program with its own dedicated revenue source that has never contributed a single penny to the national deficit. This benefit cut is called the chained CPI-U. It is being presented as a minor technical change, but it would slash benefits of all beneficiaries, including current retirees, disabled workers, orphans and others.
This policy brief released by Latinos for a Secure Retirement discusses how the proposed cut is a threat to the financial security of every American who relies, or will rely, on Social Security.