[Congressional Record (Bound Edition), Volume 156 (2010), Part 11]
[Extensions of Remarks]
[Pages 14953-14954]
[From the U.S. Government Publishing Office, www.gpo.gov]




     INTRODUCTION OF H.R. 5987, THE SENIORS PROTECTION ACT OF 2010

                                 ______
                                 

                           HON. EARL POMEROY

                            of north dakota

                    in the house of representatives

                         Friday, July 30, 2010

  Mr. POMEROY. Madam Speaker, I rise to introduce the Seniors 
Protection Act of 2010, H.R. 5987. I am honored to be joined by many of 
my colleagues who have heard from senior citizens back home about the 
pressing need for Congress to provide this relief in light of the 
widely held expectation that there will be no increase in Social 
Security benefits for a second year in a row. The legislation would 
ensure that seniors, veterans and people with disabilities who receive 
Social Security and similar federal benefits receive a one-time $250 
payment in the event that no cost-of-living-adjustment (COLA) is 
announced this fall.
  Seniors did not cause the near meltdown of the economy that occurred 
in the last days of the prior Administration, yet too many are still 
feeling the brunt of its fallout. This bill would help seniors across 
the country who face the likely possibility that on October 15th, the 
Social Security Administration will announce for the first time ever--
as a result of a long-standing statutory formula--that there will not 
be a COLA in Social Security benefits in back-to-back years.
  The failed economic policies of the prior Administration left the 
nation in such a deep recession that, for the first time since 
automatic COLAs began in 1975, recipients of Social Security, 
Supplemental Security Income, Veterans Administration Pension and 
Disability Compensation, and Railroad Retirement benefits did not 
receive a COLA in January of this year.
  Social Security benefit levels are quite modest--only $14,000 a year 
for the average retiree. Yet, the median income for senior households 
is a mere $24,000, reflecting just how much Social Security means to 
most elderly Americans. Six in ten seniors rely on Social Security for 
more than half of their income. About a third of retirees have little 
other than Social Security to live on.
  Although economy-wide measures of inflation have shown no net 
increase since the last COLA, which reflected price levels in the third 
quarter of 2008, Medicare premiums and health care costs have continued 
to rise. Moreover, seniors' other sources of income have weakened as a 
result of the economic downturn: the financial collapse reduced the 
value of their IRAs; interest rates are low, reducing income from 
seniors' savings; and the housing crash reduced seniors' home equity. 
The one-time $250 payment for retirees and other beneficiaries would 
represent less than two percent of the average annual Social Security 
benefit.
  Seniors who depend on their very modest Social Security benefits 
worry about meeting their basic day-to-day expenses. I have heard these 
concerns from seniors in my district and from Members of Congress who 
are hearing these same worries from their seniors. I am pleased those 
Members are joining me in introducing the Seniors Protection Act of 
2010. Democrats are honoring America's commitment to protect the 
purchasing power of seniors' Social Security benefits.
  For 75 years, and through 13 recessions, Social Security has been a 
steady and reliable source of income--never a day late nor a dollar 
short. And since 1975, when Congress implemented automatic COLAs, 
recipients of Social Security have been able to maintain purchasing 
power over time. Social Security is often the only source of retirement 
income that is fully protected against the corrosive effects of 
inflation.
  This bill is responsive to seniors and responsible to taxpayers. My 
colleagues and I are committed to fiscal responsibility and will ensure 
that the Seniors Protection Act of 2010 shall not cause an increase in 
the federal deficit. When the bill comes to the House floor it will 
include the necessary offsets to comply with the PAYGO law.
  The legislation is supported by seniors. With regard to this 
legislation, our former colleague Barbara Kennelly, President of the 
National Committee to Protect Social Security and Medicare said:

       For the millions of seniors who rely upon Social Security 
     as their only source of income, and millions more who rely 
     upon it for at least half of their income, a one-time payment 
     to make up for the lack of a COLA is not a luxury, it's a 
     necessity. I applaud the Members of the Congress who 
     understand that helping seniors maintain their purchasing 
     power for necessities like health

[[Page 14954]]

     care, fuel and food, not only improves their quality of life 
     but also helps the local economy.

  AARP Senior Vice President Drew Nannis offered the following 
statement:

       For over three decades, millions of Americans have counted 
     on annual increases in their Social Security checks to help 
     make ends meet. This year, 41 million older Americans did not 
     receive a Social Security COLA, the first time since 
     automatic Social Security adjustments went into effect in 
     1975.
       This relief will put money in the pockets of millions of 
     older Americans struggling to make ends meet--money likely to 
     be injected directly into our fragile economy.

  Edward F. Coyle, Executive Director of the Alliance for Retired 
Americans said:

       Seniors are struggling to get by. $250 may not seem like 
     much on Wall Street, but to retirees on Main Street it could 
     be what allows them to pay their electric bill or buy 
     groceries. We must make sure Social Security meets today's 
     basic needs.

  I urge my colleagues to stand up for seniors and support the Senior 
Protection Act of 2010.

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