Chained CPI Plan Scrapped for Now, Legislators Say
December 2, 2013
Reports revealed that the chained Consumer Price Index (CPI) proposal that Republican lawmakers are continuing to push in the fiscal cliff deal has been temporarily removed off the table.
According to a Federal Times report, Rep. Chris Van Hollen (D, Maryland) told CNN last December 30 that “a big roadblock” was holding back the chained CPI issue, but it had been put aside for a while.
The report also said that Senator Olympia Snowe (R, Maine) told The Hill newspaper that Social Security cuts have been scrapped; however, the matter will be reconsidered later in the year as part of the efforts to raise debt ceiling.
For the Republican negotiators in the House of Representatives, the chained CPI is being considered as the proposed replacement for the current cost-of-living adjustment calculation.
Basically, the average percentage points of the chained CPI are 0.25 to 0.30 lower every year as compared to the standard CPI measurements.
Apparently, this would decrease the COLAs for federal retirees’ pensions, as well as for Social Security recipients and military personnel.
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