'Chained CPI' Proposal Would Harm Beneficiaries

WASHINGTON, Dec. 18, 2012 /PRNewswire-USNewswire/ -- Teamsters General President Jim Hoffa urged President Obama and Congress to reject any proposal to cut Social Security benefits by adopting the chained consumer price index ("chained CPI") to calculate cost-of-living adjustments.

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The Teamsters oppose the chained CPI for Social Security because it would most hurt the oldest and poorest retirees.

"Social Security does not contribute to the budget deficit and should remain off the table in these year-end budget negotiations," Hoffa said. "Americans work all their lives to earn the Social Security benefits they were promised. It would be a terrible mistake to go back on that promise."

Chained CPI is not an accurate measurement of inflation for the elderly, whose primary costs are housing and health care. Those expenses are rising faster than other costs. Using the chained CPI would result in a cut to Social Security benefits by $112 billion over 10 years.

"We are making sure our members are aware of this issue," Hoffa said. "We strongly oppose cuts to Social Security, Medicare and Medicaid and we will not waver from that position."

Hoffa said the Teamsters also oppose any proposal that would increase the Medicare eligibility age.

Founded in 1903, the Teamsters Union represents more than 1.4 million hardworking men and women in the United States and Canada. Visit www.teamster.org for more information. Follow us on Twitter @Teamsters or on Facebook at www.facebook.com/teamsters.

SOURCE International Brotherhood of Teamsters