Seniors Protection Act of 2010

Thank you very much. I appreciate the sponsor of the legislation.

Mr. Speaker, what it comes down to is that it is not as my good friend characterized it: throwing money away or giving money away. This is whether you consider people who have helped build this country to what it is, who have paid into the Social Security Trust Fund, and who very often rely entirely on Social Security for their support. These are people who, frankly, on average, are making in the magnitude of $16,000, $17,000, $20,000 for the entire year.

The Social Security COLA was passed in the 1970s with a very logical rationale, which was to allow seniors to keep up with the high cost of living. The mistake that we continually make--and perhaps it's because the law is written incorrectly or perhaps it's a misinterpretation--is that we assume for a moment that, when inflation is at a very low level like it is today, it means costs haven't risen for seniors; but if you look at the things that seniors are actually buying and if you look at the things that they need in order to survive--housing, health care, their very basics for food--all of these things are actually experiencing rising costs.

You know, it is somewhat ironic that, when I hear my good friends on the other side talk about the need for austerity, it always seems to be that it is the people who are in the middle class and struggling to make it who are the ones who are supposed to take the hit. Social Security beneficiaries are the broad cross section of this country, and we have made a contract with them.

I have to tell you that I know the new Republican Congress was elected on a platform of eviscerating Social Security as we know it. That is not a rhetorical talking point. If you look at the book quite literally, the book written by the person who is going to be the chairman of the Budget Committee on the Republican side, he suggests turning large portions of the Social Security Trust Fund to the stock market.

Yes, that is their belief. That is what they think the lesson is that was learned.

So there really is a question here about who we are fighting for. Mr. Pomeroy and the people who are going to vote ``yes'' on this bill say we want to fight for senior citizens who are struggling to make it each and every day. They are the ones who believe that Social Security isn't some kind of bizarre Socialist plot but is a way that we have created a safety net. That's all it is.

Nobody, I say to my colleagues, collects their Social Security checks and says, ``Woo-hoo, I'm rich.'' They collect them and say, ``Oh, what a relief. I can get through to the next month. I can continue with the standard of living that I have without its being chipped away.''

Well, now, after 2 consecutive years, we will see the Social Security cost-of-living increase, which is going to inch up to keep track of costs that they have elsewhere in life, be restored. We are doing the best we can. I believe, frankly, the COLA law needs to be rewritten. I believe it did not contemplate the type of scenario we have today in which overall inflation rates are going down and the costs for seniors are staying high.

As other speakers have pointed out, there are two fundamental mistakes that get made when the Social Security Trust Fund is calculated:

One, the basket of things that a senior actually buys is entirely different from what a teenager buys or from what a businessperson buys. They have very discrete costs, and those costs are going up.

It is also important to know that there are sometimes regional differences. In the part of the country that Mr. Pomeroy comes from, energy costs are sometimes exceedingly high because of cold winters. In the parts of the country that I represent and that Congressman Pascrell represents, the cost of housing is extraordinarily high. It is definitely going up more than 0 percent a year.

I would also remind my Republican colleagues of one other thing. A lot of them did not like the Social Security program from the word ``go.'' They didn't like it even then. There is a schizophrenia inherent in the Republican position about Social Security. They really nailed, or actually got it in their bones, that having a safety net program for senior citizens was really something government should not be doing. They didn't like it. Go take a look at the debate back in 1933 when it began. Yet, from 1935, which is when the checks started coming, until today, one thing has been consistently true: month after month, year after year, this program has worked exactly how it was designed. It was designed to allow one generation to help provide a safety net for the next--year after year, generation after generation.

I want to say one other thing.

This whole idea that the apocalypse is arriving and Social Security is coming undone at the seams is wildly, wildly overblown. Today, the Social Security program will add to the deficit exactly zero dollars and zero cents. That's more than I can say about the tax cuts for billionaires, which is going to add $700 billion to the deficit over 10 years.

So what we are saying is that we Democrats, we who will vote ``yes'' on this bill, are standing up and fighting for senior citizens. We are standing up and fighting for every Social Security beneficiary, even the ones who are Republicans and Independents from all parts of the country, because we fundamentally believe the program works. If you believe that the Social Security program is a good and virtuous program, this is your chance to show it, by voting ``yes,'' because this is a chance to improve it.

If you believe that the Social Security program is some kind of hoax or a fraud or you believe what many of my Republican friends believe, that it should be privatized, dismantled, eliminated, tossed in the trash can, then you should probably vote ``no'' on this because this bill only strengthens Social Security.

Now let me make one final remark--and I thank very much Mr. Pomeroy for being the sponsor of this legislation. He has never lost sight of the fact that the senior citizens that we help with Social Security are exactly the ones who helped put us in a position to build this country to what it is today.

Let me make one final point. You know, in all of the political back and forth that very often happens during campaign season, I think that we really did just see a campaign where one side operated almost entirely from a position of what they were against--they're against strengthening Social Security, they're against health care reform, they're against financial reform, they're against a reduction of taxes on the middle class.

We know precious little about what the new incoming Republican Congress is in favor of. This is an interesting test, where they are on Social Security. The chairman of their incoming Budget Committee believes in privatizing it. Many of their candidates kind of hemmed and hawed when asked. This is it, this is a good early test. And I would want to remind the American people that if you believe Social Security is one of those programs you really think should be protected and strengthened, this is the team that's fighting for you, the one that's offering this piece of legislation.

I urge my colleagues to vote ``yes,'' and I urge my Republican colleagues to finally realize that supporting senior citizens and Social Security is a virtuous and good thing to do, even from their perspective.

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.

AARP Senior Vice President Drew Nannis offered the following statement:

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.

Edward F. Coyle, Executive Director of the Alliance for Retired Americans said:

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.

I urge my colleagues to stand up for seniors and support the Senior Protection Act of 2010.

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 5987) to ensure that seniors, veterans, and people with disabilities who receive Social Security and certain other Federal benefits receive a one-time $250 payment in the event that no cost-of- living adjustment is payable in 2011, as amended.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks on H.R. 5987, the bill now under consideration.

Mr. Speaker, I yield myself such time as I may consume.

In October, the Social Security Commissioner announced there would be no cost-of-living adjustment--or COLA--for Social Security benefits in 2011. This is the result of economic conditions. It is not due to action or inaction on the part of Congress. Congress enacted legislation in 1975 to provide for an automatic cost-of-living adjustment so seniors would not face year after year of rising prices for daily expenses with no increase in benefits. Unfortunately, due to the formula, next month will mark the first time since 1975 when the automatic COLA will not increase for the second year in a row. Because the recovering economy is slowly turning around, prices tracked by those bureaucrats measuring these items find that it has not reached the peak of inflation in 2008 caused by the spike of energy prices. So it is an anomaly within the formula providing no cost-of-living adjustment.

Any of us visiting with our senior citizens across this great land understand something quite different has occurred within the life of our seniors: they are experiencing higher prices. In fact, this is causing a hardship for so many, given the fact that Social Security benefit levels are really very modest. They are $14,000 for the average retiree. It is $13,000 on average in North Dakota. We estimate that some more than 30 million Americans get most of their income from Social Security, and many millions of Americans get all of their income from Social Security.

So, basically, they have their benefit levels flatlined at a time when they are encountering higher costs, reducing their quality of life experience, and disappointing them greatly about Social Security.

The bill before us would provide 54 million Americans with a $250 payment in lieu of COLA. Now, for those at the very bottom, this means a lot--about a $20 a month cost-of-living adjustment to help them with those higher costs.

I want us to think for just a moment, Mr. Speaker, about this very modest $250 payment, $20 a month, in contrast to some of the relief measures being tossed around as negotiations proceed to conclude this session. We heard about a deal the White House has been discussing with the Senate that would provide, for example, an estate tax provision representing a windfall to the wealthiest few families in this country. At a time when Congress is considering measures that would provide vast amounts of relief to the wealthiest who need it the least, you would think that we might be able to measure support for $250 to seniors living on Social Security checks unable to meet their expenses in light of higher costs but no COLA.

The bill before us should pass under any sense of fairness, particularly at this time of the holidays. The bill is supported by AARP, the Alliance for Retired Americans, the National Committee to Preserve Social Security and Medicare, the Strengthen Social Security Campaign, the Disabled American Veterans, and the Wider Opportunities for Women organizations.

Mr. Speaker, I encourage my colleagues to support H.R. 5897, the Seniors Protection Act of 2010.

I reserve the balance of my time.

Mr. Speaker, I yield 1 minute to the gentleman from New York (Mr. Higgins).

Mr. Speaker, at this time I yield 1 minute to the gentleman from Iowa (Mr. Loebsack).

Mr. Speaker, I yield 1 minute to the gentlewoman from Florida (Ms. Castor).

Mr. Speaker, I yield 1 minute to the gentleman from Wisconsin, Dr. Kagen.

Mr. Speaker, I yield 2 minutes to the gentleman from Connecticut (Mr. Courtney).

Mr. Speaker, I yield the balance of my time to the gentleman from New York (Mr. Weiner).

Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, on that I demand the yeas and nays.

Mr. Speaker, I rise today in support of H.R. 5987, the Seniors Protection Act. When the Social Security Administration announced there would not be an automatic cost-of-living-adjustment (COLA) for the second consecutive year, I urged the House leadership to bring H.R. 5987 to the floor. The bill provides a onetime payment of $250 which equals roughly a 1.8 percent increase in retirement benefits to seniors, veterans, persons with disabilities and railroad retirees.

Social Security has been a reliable source of income for 58 million Americans living on fixed incomes. Today, 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. In the 12th Congressional District of Illinois I am privileged to represent, 125,810 people receive Social Security and 19,365 receive Supplemental Security Income (SSI) benefits.

While there was no inflation from the third quarter of 2008 to the third quarter of 2010, health care and prescription drug costs continue to significantly outpace inflation; yet seniors have not received a COLA adjustment to make up for these burdens. Swiftly enacting H.R. 5987 is necessary to ensure my constituents and Americans across the country are able to make ends meet.

Not only is this payment critical to beneficiaries during this economic discovery, the Economic Policy Institute 2010 report concluded the $250 Social Security and SSI payment provided through the American Recovery and Reinvestment Act increased GDP by roughly 0.5 percent in the second quarter of 2009, which translates to approximately 125,000 jobs created or saved because of these payments.

Mr. Speaker, for 75 years, Social Security has served our seniors well. They have worked hard and earned their retirement benefits. Congress must act quickly to enact H.R. 5987 to demonstrate our steadfast support for our seniors. I strongly urge my colleagues to support the bill.

Mr. Speaker, I rise today in support of H.R. 5987, the Seniors Protection Act. When the Social Security Administration announced there would not be an automatic cost-of-living-adjustment, COLA, for the second consecutive year, I urged the House leadership to bring H.R. 5987 to the floor. The bill provides a onetime payment of $250 which equals roughly a 1.8 percent increase in retirement benefits to seniors, veterans, persons with disabilities and railroad retirees.

Social Security has been a reliable source of income for 58 million Americans living on fixed incomes. Today, 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. In the 12th Congressional District of Illinois I am privileged to represent, 125,810 people receive Social Security and 19,365 receive Supplemental Security Income, SSI, benefits.

While there was no inflation from the third quarter of 2008 to the third quarter of 2010, health care and prescription drug costs continue to significantly outpace overall inflation; yet seniors have not received a COLA adjustment to make up for these burdens. Swiftly enacting H.R. 5987 is necessary to ensure my constituents and Americans across the country are able to make ends meet.

Not only is this payment critical to beneficiaries during this economic recovery, the Economic Policy Institute 2010 report concluded the $250 Social Security and SSI payment provided through the American Recovery and Reinvestment Act increased GDP by roughly 0.5 percent in the second quarter of 2009, which translates to approximately 125,000 jobs created or saved because of these payments.

Mr. Speaker, for 75 years, Social Security has served our seniors well. They have worked hard and earned their retirement benefits. Congress must act quickly to enact H.R. 5987 to demonstrate our steadfast support for our seniors. I strongly urge my colleagues to support the bill.

Mr. Speaker, I move to suspend the rules and pass the bill (S. 3789) to limit access to social security account numbers.

Mr. Speaker, earlier this year, I introduced a bill with my friend, the ranking member on the Social Security Subcommittee, Sam Johnson, to protect the accuracy of Social Security records and help shield individuals from identity theft. Our bill prohibited Federal, State, and local governments from employing prisoners in any capacity that would allow inmates access to the full or partial Social Security numbers of other individuals, such as through prison labor contracts. The bipartisan Senate bill before us today does the same thing and also prohibits Federal, State, and local governments from displaying Social Security numbers on paper checks, which will also help protect the Social Security program and protect fraud. Both are obvious changes that would protect millions of Americans from identity theft.

Mr. Speaker, I urge passage of this bill.

I reserve the balance of my time.

Mr. Speaker, I yield 2 minutes to the gentleman from Houston, Texas (Mr. Gene Green).

(Mr. GENE GREEN of Texas asked and was given permission to revise and extend his remarks.)

Mr. Speaker, I yield the gentleman 1 additional minute.

Mr. Speaker, I yield 2 minutes to the gentleman from Oregon (Mr. DeFazio).

Mr. Speaker, by way of close, let me say that the legislation before us is important and reflects what has been a pattern of bipartisan work between the ranking member and myself as I have chaired the Social Security Subcommittee. I have enjoyed working with Sam Johnson. It is a pretty thrilling thing for a kid from North Dakota to get to work with an American hero, and I have appreciated his conscientious service as ranking member of the Social Security Subcommittee.

I also, to colleagues, have deeply appreciated the opportunity to chair the committee. I received a Social Security check in my own life when my dad died as I was a teenager. To have the opportunity to chair the subcommittee, protecting the United States' most important domestic program, Social Security, was a deep honor and a responsibility that I'll always treasure, having had that chance.

I want to thank the staff members who helped throughout, keeping this subcommittee superbly supported with the important policy work before it. Kathryn Olson, Joel Najar, Morna Miller, Jennifer Beeler on the majority. We have certainly appreciated working with Kim Hildreth on the minority. It has been a terrific experience.

General Leave

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks on S. 3789, the bill now under consideration.

I encourage my colleagues to support this bill.

I yield back the balance of my time, Mr. Speaker.