Chained CPI Coalition
FRA attended a press
conference this week hosted by Senator Bernie Sanders (Vt.), the new
Chairman of the Senate Veterans Affairs Committee, announcing the
formation of a coalition of seniors, veterans/military associations and labor organizations opposed
to using the so-called chained CPI to calculate future benefits.
Senators Sheldon Whitehouse (R.I.) and Jeff Merkley (Ore.) also
participated in the event.
Federal deficit reduction
discussions have focused in part on swapping the CPI with the so-called
“chained CPI” that takes into account the effect of
substitutions that consumers make in response to changes in prices. Over
time change could significantly impact annual Cost-of-Living-Adjustments
(COLAs) for retirees and veterans benefits. FRA is committed to ensuring
equitable COLAs for military retiree’s retainer pay,
veteran’s disability compensation, dependency and indemnity
compensation for surviving spouses and children.