Concerned that seniors, veterans, and people with disabilities could face a year without a cost of living increase in their benefits, Kilili joined 84 other members of the U.S. House of Representatives as an original co-sponsor of a bill providing a one-time payment of $250 to those who depend on Social Security.
The Seniors Protection Act of 2010, H.R. 5987, authored by Earl Pomeroy. D-N.D. and chairman of the House Subcommittee on Social Security, was introduced on Friday, July 30.
“Seniors and others who depend for a large part of their annual income on Social Security are especially hard hit by the tough times we are living through,” said Sablan.
“We included a $250 make-up check in the Recovery Act last year. 2,570 Social Security recipients in the Northern Marianas received those checks, which pumped $642,420 into our local economy.
“It looks like we may have to do the same this year.”
The $250 payment to seniors, veterans, and people with disabilities, who receive Social Security, will only kick in, if the there is no cost of living increase announced on October 15.
Since 1975 Social Security benefits have increased each year to make up for increases in the price of goods. But because economic growth is slow, prices have not changed on average. So, it is expected the Social Security Administration will not announce a cost of living increase.
“There is a problem with the way this formula is calculated,” according to Sablan. “It doesn’t take into account how much of seniors’ money goes to health care. And health care costs have continued to rise, even in this economy.
“For that reason I have also co-sponsored H.R. 2365, the Consumer Price Index for Elderly Consumers Act. This requires the U.S. Department of Labor to prepare a monthly Consumer Price Index for those ages 62 and over. The bill also requires this number to be used in the computation of cost-of-living increases for Social Security and Medicare benefits.
“H.R. 2365 would reduce the need for the kind of special payment — the $250 check — that we are proposing for this year.”
Social Security benefits are an increasingly important stream of income to the Northern Marianas economy. From 2003 to 2009 Social Security payments to people in the CNMI rose from $10 million to $15 million.
“Most of this Social Security money did go directly into our local economy to pay for food and utilities and the other basic necessities of life,” Sablan says. “So it’s important to seniors and veterans and disabled persons, who receive the benefits, but it’s important to local businesses, too.”
