Introduction of H.R. 5987, The Seniors Protection Act of 2010

Floor Speech

* Mr. POMEROY. Madam Speaker, I rise to introduce the Seniors Protection Act of 2010, H.R.5987. I am honored to be joined by many of my colleagues who have heard from senior citizens back home about the pressing need for Congress to provide this relief in light of the widely held expectation that there will be no increase in Social Security benefits for a second year in a row. The legislation would ensure that seniors, veterans and people with disabilities who receive Social Security and similar federal benefits receive a one-time $250 payment in the event that no cost-of-living-adjustment (COLA) is announced this fall.

* Seniors did not cause the near meltdown of the economy that occurred in the last days of the prior Administration, yet too many are still feeling the brunt of its fallout. This bill would help seniors across the country who face the likely possibility that on October 15th, the Social Security Administration will announce for the first time ever--as a result of a long-standing statutory formula--that there will not be a COLA in Social Security benefits in back-to-back years.

* The failed economic policies of the prior Administration left the nation in such a deep recession that, for the first time since automatic COLAs began in 1975, recipients of Social Security, Supplemental Security Income, Veterans Administration Pension and Disability Compensation, and Railroad Retirement benefits did not receive a COLA in January of this year.

* 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.

* Although economy-wide measures of inflation have shown no net increase since the last COLA, which reflected price levels in the third quarter of 2008, Medicare premiums and health care costs have continued to rise. Moreover, 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.

* Seniors who depend on their very modest Social Security benefits worry about meeting their basic day-to-day expenses. I have heard these concerns from seniors in my district and from Members of Congress who are hearing these same worries from their seniors. I am pleased those Members are joining me in introducing the Seniors Protection Act of 2010. Democrats are honoring America's commitment to protect the purchasing power of seniors' Social Security benefits.

* For 75 years, and through 13 recessions, Social Security has been a steady and reliable source of income--never a day late nor a dollar short. And since 1975, when Congress implemented automatic COLAs, recipients of Social Security have been able to maintain purchasing power over time. Social Security is often the only source of retirement income that is fully protected against the corrosive effects of inflation.

* This bill is responsive to seniors and responsible to taxpayers. My colleagues and I are committed to fiscal responsibility and will ensure that the Seniors Protection Act of 2010 shall not cause an increase in the federal deficit. When the bill comes to the House floor it will include the necessary offsets to comply with the PAYGO law.

* The legislation is supported by seniors. With regard to this legislation, our former colleague Barbara Kennelly, President of the National Committee to Protect Social Security and Medicare said:

For the millions of seniors who rely upon Social Security as their only source of income, and millions more who rely upon it for at least half of their income, a one-time payment to make up for the lack of a COLA is not a luxury, it's a necessity. I applaud the Members of the Congress who understand that helping seniors maintain their purchasing power for necessities like health care, fuel and food, not only improves their quality of life but also helps the local economy.

For over three decades, millions of Americans have counted on annual increases in their Social Security checks to help make ends meet. This year, 41 million older Americans did not receive a Social Security COLA, the first time since automatic Social Security adjustments went into effect in 1975.

This relief will put money in the pockets of millions of older Americans struggling to make ends meet--money likely to be injected directly into our fragile economy.

Seniors are struggling to get by. $250 may not seem like much on Wall Street, but to retirees on Main Street it could be what allows them to pay their electric bill or buy groceries. We must make sure Social Security meets today's basic needs.

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