Page 2 - aruba-today-20221014

A2 UP FRONT
Friday 14 OctOber 2022
Social Security benefits to jump by 8.7% next year

From Front a system that’s facing a
severe shortfall in coming
By FATIMA HUSSEIN years.
Associated Press The annual Social Security
WASHINGTON (AP) — Mil- and Medicare trustees re-
lions of Social Security re- port released in June says
cipients will get an 8.7% the program’s trust fund will
boost in their benefits in be unable to pay full ben-
2023, a historic increase but efits beginning in 2035.
a gain that will be eaten up If the trust fund is deplet-
in part by the rising cost of ed, the government will
everyday living. be able to pay only 80%
The cost-of living adjust- of scheduled benefits, the
ment — the largest in more report said. Medicare will
than 40 years — means the be able to pay 90% of to-
average recipient will re- tal scheduled benefits if the
ceive more than $140 extra fund is depleted.
a month beginning in Janu- In January, a Pew Research
ary, the Social Security Ad- Center poll showed 57% of
ministration said Thursday. U.S. adults saying that “tak-
While Social Security recipi- ing steps to make the Social
ents welcomed the ben- Security system financially
efit increase, many said it sound” was a top priority
wasn’t enough to cover for the president and Con-
the impact of inflation. gress to address this year.
It’s “not much help,” said Securing Social Security
85-year-old Shirley Parker, got bipartisan support, with
who lives in Chatham on 56% of Democrats and 58%
Chicago’s South Side, U.S. Social Security Administration office is seen in Mount Prospect, Ill., Wednesday, Oct. 12, 2022. of Republicans calling it a
Home maintenance costs Associated Press top priority.
and high grocery prices Some solutions for reform-
are cutting steeply into her tion’s acting commissioner, said the benefit increase Willie Clark, 65, of Wauke- ing Social Security have
budget. “Food is ridiculous. Kilolo Kijakazi. is “no cause for celebra- gan, Illinois, says his bud- been proposed, but none
I come out with a bag full President Joe Biden tion,” since it will not help get is “real tight” and the has moved forward in a
of groceries — $50 — don’t on Thursday afternoon all recipients overcome in- increase in his Social Secu- sharply partisan Congress.
have about 10 items,” she echoed the sentiment that flation, especially if prices rity disability benefits could House Speaker Nancy Pe-
said. the Medicare premium re- continue to rise. give him some breathing losi said Thursday the COLA
A separate government duction would have some “There’s already indica- room to cover household announcement is a remind-
report Thursday showed in- impact on retirees’ wal- tions that health care infla- expenses he’s been hold- er that “extreme MAGA
flation newly accelerating. lets. “Seniors are gonna tion is going to be through ing off on. Republicans are openly
The Consumer Price Index get ahead of inflation next the roof next year,” Arnone Still, he doubts how much plotting new schemes to
rose 0.4% for September af- year,” Biden said. “For the said. of the extra money will end slash seniors’ benefits and
ter just 0.1% in August and first time in 10 years, their Margaret Toman, a up in his pocket. His rent in raise their costs – including
is up 8.2% for the past 12 Social Security checks will 78-year-old in Garner, an apartment building sub- by threatening to cause an
months. Jobless claims for go up while their Medicare North Carolina, who had sidized by the U.S. Depart- economic catastrophe by
unemployment benefits premiums go down.” stopped working to take ment of Housing and Urban holding the debt limit hos-
rose for the week. Jo Ann Jenkins, CEO of the care of her mother, who Development is based on tage for their toxic agen-
The Social Security Admin- AARP, said the benefits in- has since died, described his income, so he expects da.”
istration said the estimated crease “will provide much the 8.7% increase as “quite that will rise, too. Earlier this year, Sen. Rick
average monthly Social Se- needed relief to millions of stingy.” Social Security is financed Scott, R-Fla., issued a de-
curity benefit for all retired Americans.” “I think most of us who are by payroll taxes collect- tailed plan that would re-
workers will be $1,827 start- Several government in- older receiving Social Se- ed from workers and their quire Congress to come
ing in January, according dexes show that inflation curity are grateful for that employers. The maximum up with a proposal to ad-
to an agency fact sheet. hits older Americans harder Social Security,” she said. amount of earnings subject equately fund Social Secu-
The boost in Social Secu- than the rest of the popu- “But that gratitude some- to Social Security payroll rity and Medicare or poten-
rity benefits will be coupled lation. Medical costs are a times covers up or replaces taxes for 2023 is $160,200, tially phase them out.
with a 3% drop in Medicare big part of the burden. a certain feeling of anger up from $147,000 in 2022. Senate Minority Leader
Part B premiums, meaning The Social Security an- at having paid into a sys- The financing setup dates Mitch McConnell, R-Ky.,
retirees will get the full im- nouncement comes just tem for so long and still to the 1930s, the brain- publicly rebuked the plan
pact of the Social Security weeks before the midterm struggling to survive.” child of President Franklin and Biden has used Scott’s
increase. elections, and at a time About 70 million people — D. Roosevelt, who believed proposal as a political blud-
“This year’s substantial So- when Democrats and Re- including retirees, disabled a payroll tax would foster geon against Republicans
cial Security cost-of-living publicans are sparring people and children — re- among average Ameri- before the midterm elec-
adjustment is the first time in about high prices now and ceive Social Security ben- cans a sense of ownership tions.
over a decade that Medi- how best to shore up the efits. This will be the big- that would protect the pro- “If Republicans in Congress
care premiums are not program financially in the gest increase in benefits gram from political interfer- have their way, seniors will
rising and shows that we future. that baby boomers, those ence. pay more for prescription
can provide more support William Arnone, chief ex- born between the years Next year’s higher payout, drugs and their Social Se-
to older Americans who ecutive of the National 1946 and 1964, have ever without an accompany- curity benefits will never be
count on the benefits they Academy of Social Insur- seen. The last time a COLA ing increase in Social Se- secure,” White House press
have earned,” said the ance, an advocacy orga- was higher was in 1981, at curity contributions, could secretary Karine Jean-
Social Security Administra- nization for Social Security, 11.2%. put additional pressure on Pierre said.q