Dugan & Associates, P.C.
No Recovery - No Fee Free Consultation
Serving all of Western Pennsylvania
Local: 412-353-3572 Toll Free: 888-9-9-D-U-G-A-N Toll Free: 888-9-9-D-U-G-A-N

Supplemental Security Income impacted by inflation proposal

Over the last several months, federal lawmakers have been debating ways to solve the federal budget deficit. One measure that has received serious discussion is tying all federal benefits -- including Supplemental Security Income and Social Security disability -- to the chained consumer price index, or chained CPI. This is a measure of inflation that would be used to set increases in benefits for cost-of-living adjustments, which impacts many Pennsylvania families.

The chained CPI is reportedly more responsive to fluctuations in consumer behavior than the current measures of inflation used to adjust benefits. Supporters of switching to the new CPI say that it will help solve many of the shortfalls in federal benefit programs. Unfortunately, this measure would wind up hurting those who rely on benefits, according to observers.

Instituting this change would result in a gradual reduction of disability benefits. Specifically, beneficiaries would see a 3 percent cut every 10 years. So, if a person becomes disabled at a relatively young age, they will see a 9 percent loss of benefits after 30 years.

Those who qualify for Supplemental Security Income generally have a small amount of regular income. For those who already have minimal financial resources and are physically unable to work, even a 3 percent cut in benefits over 10 years could be devastating. This is why many are cautioning against using the chained CPI.

At this point, it is uncertain how Congress will act. In the mean time, those who are in need of disability benefits would likely be best served by determining what options they have to gain a better sense of financial security.

Source: Bloomberg BNA, "Chained CPI Would Unfairly Cut Social Security Benefits, Speakers Say," March 12, 2013

No Comments

Leave a comment
Comment Information

Pittsburgh Office
4 West Manilla Avenue
Pittsburgh, PA 15220

Phone: 412-353-3572
Phone: 412-922-0800
Fax: 412-922-0801
Pittsburgh Law Office Map

Beaver County Office
2002 McMinn St.
Aliquippa, PA 15001

Phone: 412-353-3572
Phone: 724-775-7372
Aliquippa Law Office Map

North Hills
6400 Brooktree Ct.
Wexford, PA 15090

Phone: 412-353-3572
Phone: 724-933-0133
Wexford Law Office Map

Butler County
125 Warrendale-Bayle Rd
Warrendale, PA 15086

Phone: 412-353-3572
Phone: 724-283-7063
Map & Directions

Monroeville
400 Penn Center Blvd.
Suite 101
Monroeville, PA 15232

Phone: 412-353-3572
Phone: 412-261-1129
Map & Directions

Westmoreland County
101 N. Main St.
Suite 104 - A
Greensburg, PA 15601

Phone: 412-353-3572
Phone: 724-836-7454
Greensburg Law Office Map

Washington County
2400 Ansys Dr.
Canonsburg, PA 15317

Phone: 412-353-3572
Phone: 724-743-0463
Canonsburg Law Office Map

Serving all of Western Pennsylvania Free Consultation

Supplemental Security Income impacted by inflation proposal | Dugan & Associates, P.C. a