Senior citizens, state officials should get same cost of living raise: Pa. lawmakers [Lancaster Watchdog]

Score one for the octogenarians.

When 81-year-old Joanne Knaub of Mountville called the Watchdog last week to question a fundamental inequity in Social Security cost of living raises, her objection caught the eye of senior citizens across Pennsylvania.

Knaub, seeing that Gov. Josh Shapiro got a 3.3% cost of living raise in January that made him the highest-paid governor in the country, called to ask why her Social Security cost of living increase was only 2.8%. That difference didn’t seem fair to her.

This week, senior citizens contacted the Watchdog from as far away as Washington County, south of Pittsburgh, to say they don’t think it’s fair either.

On top of that, nearly all of Lancaster County’s Republican and Democratic state lawmakers, who also get the higher 3.3% raise, touched base to say they, too, recognize the basic injustice.

Rep. Nikki Rivera, a Democrat in the 96th District, said she would gladly sign on to legislation that makes the cost of living raises of state officials commensurate with Social Security raises. Not every county legislator stated their position as plainly, but their comments, which appear at the bottom of this column, indicate support for similar measures. Please take time to read what they have to say.

The issue

The disparity in the cost of living raises stems from differences in how the raises are calculated. The 3.3% cost of living raise for Pennsylvania governmental officials reflects regional inflation in the Mid-Atlantic states, whereas the Social Security cost of living adjustment is based on a national average inflation of 2.8%.

While the willingness of our state legislators to cut their raises in solidarity with Pennsylvania seniors is admirable, their magnanimity comes from a place of privilege. With annual salaries for state legislators starting at more than $113,000, the pay cut would be a small drop in a big bucket.

Seniors living on less than $25,000 a year (the average monthly Social Security benefit is $2,071) can’t afford to be so generous. They need cost of living raises that keep pace with inflation where they live.

The state Legislature has actually taken a sound fiscal approach here: Cost of living raises keyed to regional inflation make sense because inflation is higher in Pennsylvania than it is in, say, Arkansas. As economists know, a raise that doesn’t keep pace with inflation is a de facto pay cut, decreasing purchasing power and increasing financial strain.

But regionalizing Social Security cost of living raises and giving Pennsylvania seniors the higher 3.3% boost would require an act of Congress, and Congressman Lloyd Smucker, who represents Lancaster County and part of York County, does not appear to be keen on the idea.

“Applying regional measures of inflation to Social Security would likely accelerate the depletion of the Social Security Trust Fund,” Smucker said.

Many Americans share Smucker’s desire to preserve Social Security for future generations, but the congressman’s suggestion that keying cost of living raises to regional inflation would hasten the insolvency of the social safety net program does not square with the math.

The Consumer Price Index for Urban Wage Earners and Clerical Workers breaks down inflation calculations across nine geographical regions comprising the United States (Pennsylvania is part of the Middle Atlantic region, which also includes New Jersey and New York), and the Social Security cost of living adjustment reflects the national average inflation across the nine regions of that index.

Paying out the regional averages severally is the same dollarwise as paying out the national average across the board. Paying by region would be a fiscal push because seniors in some regions would get less than the national average raise and seniors in other regions would get more, but with regional disbursement, all seniors would be compensated at a rate closer to the actual inflation they experience.

Simply put, regional adjustments are fairer and cost the same.

Why it matters

To understand why this is important, let’s consider the problem in real terms: According to the Middle Atlantic regional inflation average, a bag of groceries that cost $100 last year in Pennsylvania now costs $3.30 more, but Pennsylvania senior citizens through Social Security are getting only an extra $2.80 to pay for it. They’re out 50 cents per $100, or on average about $10 a month.

For seniors on fixed incomes who stretch dollars just to survive, $10 could be a day’s worth of food. They need that money.

The Watchdog wonders whether Sens. John Fetterman and Dave McCormick understand that need. Neither senator responded to questions about cost of living raises this week, but if you want to ask them yourself, contact Fetterman at lanc.news/AskFetterman and contact McCormick at lanc.news/AskMcCormick.

The Watchdog also wonders whether Gov. Shapiro understands that need.

While Lancaster County’s contingent of state legislators conscientiously answered questions this week about the disparity in cost of living increases, Shapiro did not directly address the issue, saying only through his spokesman that “The Governor absolutely believes Pennsylvania’s seniors deserve more money in their pockets. Congress is responsible for making any changes to Social Security indexing.”

Does that mean Shapiro has no responsibility here?

The governor might not control what happens in Congress or the General Assembly, but his opinion holds sway in Harrisburg and Washington, and he hasn’t been shy about voicing that opinion in other matters.

Just Thursday, Shapiro took to social media to call on the state Legislature to “send a bill to my desk” that would require schools to limit student cellphone use.

Could he not just as easily hop on X to ask the Legislature to send him a bill that would require the state to limit cost of living increases for Pennsylvania officials?

Could he not just as easily call on Pennsylvania’s congressional delegation to put forward legislation requiring the Social Security Administration to account for regional differences in inflation when calculating its cost of living adjustment?

You can try asking him at lanc.news/AskShapiro.

Perhaps you’ll have better luck than the Watchdog.

LAWMAKERS ADDRESS DISPARITY IN COST OF LIVING RAISES FOR SENIORS

The Watchdog put the following two questions to state and federal lawmakers who represent Lancaster County:

1. Do you think Pennsylvania senior citizens should receive the same cost of living raise as state government officials?

2. Do you think Pennsylvania senior citizens, like state government officials, should get cost of living raises that are keyed to regional differences in inflation, and if so, what do you intend to do about it?

They gave the following responses.

Reps. Bryan Cutler, 100th Pa. House District; Mindy Fee, 37th District; Keith Greiner, 43rd District; Tom Jones, 98th District; Steven Mentzer, 97th District; and David Zimmerman, 99th District, issued a joint statement.

“Lancaster County Republicans have always been leaders on reform, including changing the legislative pension system and voluntarily giving up the defined benefit plan. We believe your point about the difference in how COLAs are assessed has validity. That is why, in the same spirit of reform we have always embodied, we, as a group, will investigate legislation to bring COLAs in line with federal levels afforded Social Security recipients.”

Sen. James Malone, 36th Pa. Senate District

“I think it’s absurd that our seniors are not getting the same cost-of-living adjustment as state lawmakers. Their Social Security cost-of-living adjustments should be tied to a regional Consumer Price Index just like ours. Unfortunately, Social Security adjustments are controlled entirely by the federal government, so the ball is in Senator McCormick, Senator Fetterman, and Representative Smucker’s court. Where I do have a say, I’ve supported legislation like SB 565, which would give retired school teachers and state workers a much-needed cost-of-living adjustment and tie future adjustments to a regional Consumer Price Index, like state lawmakers.”

Sen. Scott Martin, 13th Pa. Senate District

Martin did not directly answer either question. Regarding cost of living raises, his spokesman said only, “Any future increase in Social Security cost-of-living adjustments are an issue for the federal government to decide, as state lawmakers play no role in that process.”

Sen. Chris Gebhard, 48th Pa. Senate District

Gebhard did not directly answer either question. Regarding cost of living raises, his spokesman said only, “All increases in the Social Security cost-of-living adjustments are calculated by the federal government with no input from the Commonwealth of Pennsylvania.”

Rep. Brett Miller, 41st Pa. House District

“At the bare minimum,” Miller said, the cost of living adjustments of senior citizens and state officials should be the same.

“Preferably, however, seniors should get more, and elected officials should either receive no COLA or have their COLA determined by a citizen commission and not be automatic. To that end, I am supportive of and a co-sponsor to a bill that will end automatic COLA’s for elected officials in Pennsylvania, thus voiding the disparity between the increases elected officials get and the increases seniors get.

“If a COLA is given to state elected officials, seniors and state officials should get the same cost of living increases which should be based on the national index. To accomplish this, state law will need to be changed to comport with the federally established increase.”

Rep. Nikki Rivera, 96th Pa. House District

“I do believe that seniors and legislators should get the same COLA. I’ll gladly sign onto legislation that makes this possible.”

Rivera clarified that she would support legislation that makes the cost of living raises of state officials commensurate with Social Security raises, effectively lowering the rate for state officials.

Rep. Izzy Smith-Wade-El, 49th Pa. House District

Smith-Wade-El said Pennsylvania senior citizens should receive “at least” the same cost of living raise as state officials.

“One of the first bills I worked on after getting elected was HB1100 which became Act 7 of 2023, making more property tax and rent relief available to more seniors. That’s something we worked on with the governor, because we were seeing older folks knocked out of the PTRR program because of these exact social security increases. It made me and my staff sick to turn away older folks just trying to get by, so we got it done for them, and built cost-of-living adjustments into the eligibility requirements.

“As a member of the Aging committee, making life more affordable for seniors is a priority for me. We have to make sure that they get the raise they deserve and ensure that those increases don’t bump them out of other critical programs. Having worked your whole life, you’re entitled to a little dignity and security.”

He also said Pennsylvania senior citizens should get cost of living raises that are keyed to regional differences in inflation.

“That’s an increase our Representatives in Congress could do and should do if they are actually committed to the lives of our seniors.

Congressman Lloyd Smucker, 11th U.S. House District

Smucker said it is up to the state General Assembly to decide whether senior citizens should receive the same cost of living raise as state government officials.

“After four years of generationally high inflation under the Biden administration, I fully understand how it may sound unfair to seniors that they are receiving a lower cost-of-living adjustment (COLA) than Pennsylvania-elected officials. The difference stems from Pennsylvania tying their COLAs to a regional measure of inflation, while Social Security relies on a national measure of inflation. Applying regional measures of inflation to Social Security would likely accelerate the depletion of the Social Security Trust Fund, which is already slated to face insolvency in late 2032, absent congressional action. This will result in current retired beneficiaries receiving only a portion of their promised benefits.

“I am committed to keeping the promise of Social Security for future generations of Americans and making life more affordable for today’s seniors and families.”

Senior citizens, state officials should get same cost of living raise: Pa. lawmakers [Lancaster Watchdog] | Local News

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