Washington, DC -- On the 75^th anniversary of Social Security, Congressman Eliot Engel (D-NY-17) vowed to fight any attempt to weaken or privatize it as the Republican-controlled House of 2005 tried to do. The 11-term congressman has introduced legislation to strengthen the program by guaranteeing seniors a minimum 3% annual increase in their Social Security Cost of Living Adjustment (COLA).  For the first time in 30 years, there was no COLA adjustment for Social Security recipients this year.

“In 2005 Republicans tried to cut guaranteed Social Security benefits and attempted to tie Americans’ retirement benefits to the whims of the stock market.  It is frightening to imagine what would have happened to Social Security recipients in the financial collapse in 2008. Now many Congressional Republicans are bringing up the same idea as part of their agenda.  We must not let that happen,” said Rep. Engel, a senior member of the House Energy and Commerce Committee.

More than 50 million Americans rely on Social Security to make ends meet.  Democrats created it 75 years ago in the depths of the Depression, and have steadfastly defended and strengthened it over time.  Every step of the way, the Republicans in Congress have opposed it.  For three-quarters of a century, through 13 recessions, Americans have been able to depend upon benefits arriving on-time and in-full to help them.

“Hard-working Americans, who have paid into this system for almost their entire working lives, have earned this guaranteed benefit.  Countless seniors would be in dire straits, after the most recent near-depression, if not for their Social Security benefits.  We cannot allow benefits to be cut or moved into private accounts, where they would be subject to the volatile stock market and the recent near-collapse of Wall Street. This is pure folly,” said Rep. Engel.

Rep. Engel’s COLA legislation, the Guaranteed 3% Cost Of Living for Seniors Act (HR 4193) would guarantee a minimum increase annually in COLA for Social Security recipients.  “Because of the way the Social Security COLA is currently calculated, there is no projected increase for this year and next.  Given that the average Social Security retirement benefit is small - only $13,800 per year and below the minimum wage salary of $15,080 - this has caused considerable anxiety among seniors,” added Rep. Engel. 

The Social Security COLA formula is currently based on index reflecting the purchasing patterns of people who earn at least half of their income from wages, which this year resulted in no COLA increases. Seniors have a different income structure and spend almost three times more on medical care than those between the ages of 25 to 64. Rep. Engel’s legislation would change the index to reflect better the income situation of seniors.

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