[Congressional Record Volume 143, Number 32 (Thursday, March 13, 1997)]
[Senate]
[Pages S2285-S2286]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 SENATE CONCURRENT RESOLUTION 7--RELATIVE TO COST-OF-LIVING ADJUSTMENTS

  Mr. SARBANES (for himself, Ms. Mikulski, Mr. Warner and Mr. Akaka) 
submitted the following concurrent resolution; which was referred to 
the Committee on Governmental Affairs:

                             S. Con. Res. 7

       Whereas over the years, Federal employees and retirees have 
     regularly been forced to bear a disproportionate share in 
     connection with deficit reduction: Now, therefore, be it
       Resolved by the Senate (the House of Representatives 
     concurring), That it is the sense of Congress that cost-of-
     living adjustments for Federal retirees should be paid 
     beginning in January of each year, as current law prescribes, 
     and should not be delayed, whether as part of a budget 
     agreement or otherwise.

  Mr. SARBANES. Mr. President, I am pleased to submit along with 
Senators Mikulski, Warner, and Akaka, this sense-of-the-Congress 
resolution. It is a simple resolution which clearly states that it is 
the sense of the Congress that Federal retiree COLA's should not be 
delayed.
  After 3 years of having their cost-of-living adjustments delayed, 
Federal retirees finally saw equity restored this year when their COLA 
adjustment became effective in January instead of April. Federal 
retirees should continue to receive their COLA on time, in line with 
all other Federal cost-of-living adjustments.
  According to the Congressional Budget Office, the average Federal 
retiree would lose an estimated $915 over the next 5 years if a three-
month COLA delay is reinstated. To many of our Nation's more than 2 
million Federal retirees, this can mean a significant difference in the 
calculation of their yearly living expenses.
  Further delaying Federal retiree COLA's would, in my view, set a 
dangerous, unfounded precedent where cutting or altering Federal 
retiree and employee benefits to effect cost savings becomes an all too 
regular and accepted practice.
  Mr. President, Federal retirees have served this Nation with the 
expectation that the benefits they have earned will be excluded from 
the pressures of achieving arbitrary budgetary targets. Disparate 
treatment of COLA recipients goes against longstanding congressional 
policy that for more than 25 years has ensured COLA equity for all 
retirees, and I urge my colleagues to join me in support of this 
important resolution.
 Ms. MIKULSKI. Mr. President, today I am joining with my 
colleagues, Senator Sarbanes, Senator Warner, and Senator Akaka to 
submit a very important resolution. Our resolution states a simple 
fact--federal retirees should not be singled out for delays in their 
cost of living adjustments.
  As my colleagues know, 1997 was the first year since 1993 that 
Federal retirees received a timely COLA. Their COLA's were delayed 
until April for the last 3 years as part of the 1993 deficit reduction 
plan. They were willing

[[Page S2286]]

to accept this delay because they knew that they would have to do their 
fair share to help us control the budget deficit. Many of them said to 
me, ``Senator, I'm willing to tighten my belt another notch to help 
this country, as long as everyone else is asked to do the same.''
  Now we have a situation where retirees are being asked to tighten the 
belt again. Except this time they are being singled out for special 
treatment. We have proposals to delay Federal retiree COLA's for 
another 4 years. I don't think that's right --it's not fair and its not 
equitable. I think all COLA's--Federal, military, and Social Security 
should be paid on time. They should be reliable and they should be 
accurate. We owe our seniors, our Government retirees, and our military 
retirees nothing less.
  I am very disturbed by the recent trend of promises broken to Federal 
employees, and retirees. I believe that promises made should be 
promises kept. When Federal employees signed up for service, they 
agreed to defer some compensation until retirement. They knew that they 
would make less salary than in the private sector, but they also knew 
that they would have a stable benefits package of health insurance, 
life insurance, and retirement. If we delay their COLA's again we are 
telling them--sorry, we did not exactly tell you the truth when you 
signed up for service. We are telling them that they cannot rely on the 
benefits that they planned their retirements around.
  I do not think this is the way we should run our Government, and it's 
not the way we should treat our Government retirees. I am working to 
make sure we honor our commitments, and I urge all my colleagues to do 
the same and support this resolution.
  Mr. WARNER. Mr. President, I rise today as a cosponsor of legislation 
expressing the sense of Congress that Federal retirement cost-of-living 
adjustments [COLA's] should not be delayed.
  I join with my colleagues Senator Sarbanes and Senator Mikulski of 
Maryland, and Senator Akaka of Hawaii in opposing President Clinton's 
fiscal year 1998 budget proposal to delay Federal retiree cost-of-
living adjustments [COLA's].
  It was a matter of great satisfaction to me that the balanced budget 
proposal approved by the Congress in 1995 provided for full CPI-based 
COLA's for Federal retirees each January through the year 2002. That 
legislation was vetoed by President Bill Clinton on December 6, 1995.
  The President has once again indicated his lack of support for COLA 
equity by submitting his fiscal year 1998 budget proposal including 
delayed Federal retiree COLA's. It is my intention to strenuously 
oppose the President's inequitable COLA policy whenever possible. I 
will be looking to the Federal retiree community for support in this 
effort as the fiscal year 1998 budget process continues.
  Federal retirees must be treated equitably in terms of cost-of-living 
adjustments [COLA's] and income security. You may recall that in 1986, 
I was an original cosponsor of the COLA equity amendment, landmark 
legislation which guaranteed equal COLA treatment for all participants 
in Government retirement programs--Social Security, civil service, and 
military. From that point until President Clinton's Deficit Reduction 
Act of 1993, full CPI-based COLA's were provided for all retirees each 
January 1.
  Regrettably, President Clinton's 1993 budget departed from the policy 
of COLA equity in that a series of COLA deferrals were put in place for 
civil service, and military retirees. As you know, Social Security 
recipients were not affected. What you may not know is that last year, 
I sponsored legislation which was enacted into law to at least retain 
COLA equity for the military and civil service. A damaging proposal had 
surfaced to further delay civil service COLA's to help fund military 
COLA's, an unworkable and unfair proposition. I vigorously opposed it 
and fought for its defeat.
  It is time once again to stand and oppose this COLA inequity for 
Federal retirees. I urge my colleagues to support this resolution to 
restore equity for all retirees.

                          ____________________