2/1/2013

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.