Social Security checks getting big boost as inflation rises
Millions of retirees on Social Security will get a 5.9% boost in benefits for 2022. The biggest cost-of-living adjustment in 39 years follows a burst in inflation as the economy struggles to shake off the drag of the coronavirus pandemic. The COLA, as it’s commonly called, amounts to an added $92 a month for the average retired worker, according to estimates Wednesday from the Social Security Administration. It’s an abrupt break from a long lull in inflation that saw cost-of-living adjustments averaging just 1.65% a year over the past 10 years. With the increase, the estimated average Social Security payment for a retired worker will be $1,657 a month next year. A typical couple’s benefits would rise by $154 to $2,753 per month. But that’s just to help make up for rising costs that recipients are already paying for food, gasoline, and other goods and services. “It goes pretty quickly,” retiree Cliff Rumsey said of the cost-of-living increases. After a career in sales for a leading steel manufacturer, Rumsey lives near Hilton Head Island, South Carolina. He cares at home for his wife of nearly 60 years, Judy, who has advanced Alzheimer’s disease. Since the coronavirus pandemic, Rumsey said he has also noted price increases for wages paid to caregivers who occasionally spell him and for personal care products for Judy. The COLA affects household budgets for about 1 in 5 Americans. That includes Social Security recipients, disabled veterans, and federal retirees, nearly 70 million people in all. For baby boomers who embarked on retirement within the past 15 years, it will be the biggest increase they’ve seen. Among them is Kitty Ruderman of Queens in New York City, who retired from a career as an executive assistant and has been collecting Social Security for about 10 years. “We wait to hear every year what the increase is going to be, and every year it’s been so insignificant,” she said. “This year, thank goodness, it will make a difference.” Ruderman says she times her grocery shopping to take advantage of midweek senior citizen discounts, but even so, price hikes have been “extreme.” She says she doesn’t think she can afford a medication that her doctor has recommended. AARP CEO Jo Ann Jenkins called the government payout increase “crucial for Social Security beneficiaries and their families as they try to keep up with rising costs.” Policymakers say the adjustment is a safeguard to protect Social Security benefits against the loss of purchasing power and not a pay bump for retirees. About half of seniors live in households where Social Security provides at least 50% of their income, and one-quarter rely on their monthly payment for all or nearly all their income. “You never want to minimize the importance of the COLA,” said retirement policy expert Charles Blahous, a former public trustee helping to oversee Social Security and Medicare finances. “What people are able to purchase is very profoundly affected by the number that comes out. We are talking the necessities of living in many cases.” This year’s Social Security trustees report amplified warnings about the long-range financial stability of the program. But there’s little talk about fixes in Congress, with lawmakers’ consumed by President Joe Biden’s massive domestic legislation and partisan machinations over the national debt. Social Security cannot be addressed through the budget reconciliation process Democrats are attempting to use to deliver Biden’s promises. Social Security’s turn will come, said Rep. John Larson, D-Conn., chairman of the House Social Security subcommittee and author of legislation to tackle shortfalls that would leave the program unable to pay full benefits in less than 15 years. His bill would raise payroll taxes while also changing the COLA formula to give more weight to health care expenses and other costs that weigh more heavily on the elderly. Larson said he intends to press ahead next year. “This one-time shot of COLA is not the antidote,” he said. Although Biden’s domestic package includes a major expansion of Medicare to cover dental, hearing, and vision care, Larson said he hears from constituents that seniors are feeling neglected by the Democrats. “In town halls and tele-town halls they’re saying, ‘We are really happy with what you did on the child tax credit, but what about us?’” Larson added. “In a midterm election, this is a very important constituency.” The COLA is only one part of the annual financial equation for seniors. An announcement about Medicare’s Part B premium they pay for outpatient care is expected soon. It’s usually an increase, so at least some of any Social Security raise gets eaten up by health care. The Part B premium is now $148.50 a month, and the Medicare trustees report estimated a $10 increase for 2022. Economist Marilyn Moon, who also served as public trustee for Social Security and Medicare, said she believes the current spurt of inflation will be temporary, due to highly unusual economic circumstances. “I would think there is going to be an increase this year that you won’t see reproduced in the future,” Moon said. But policymakers should not delay getting to work on retirement programs, she said. “We’re at a point in time where people don’t react to policy needs until there is a sense of desperation, and both Social Security and Medicare are programs that benefit from long-range planning rather short-range machinations,” she said. Social Security is financed by payroll taxes collected from workers and their employers. Each pays 6.2% on wages up to a cap, which is adjusted each year for inflation. Next year the maximum amount of earnings subject to Social Security payroll taxes will increase to $147,000. The financing scheme dates to the 1930s, the brainchild of President Franklin D. Roosevelt, who believed a payroll tax would foster among average Americans a sense of ownership that would protect the program from political interference. That argument still resonates. “Social Security is my lifeline,” said Ruderman, the New York retiree. “It’s what we’ve worked for.” Republished with the permission of the Associated Press.
Women of Influence: Alabama Democratic Party Chair Nancy Worley
Nancy Worley has been an influencer in the state of Alabama for over forty years. Worley, a lifelong resident of the Yellowhammer State, grew up in New Hope, Ala. on a family farm. She attended the University of Montevallo receiving her Bachelors degree in 1973; then continued her education at Jacksonville State University, obtaining a Master’s degree in 1975. After graduation Worley taught in the public school system in Decatur for 25 years. In addition to teaching English and Latin she was very active in the school, sponsoring and leading numerous professional and civic organizations, student clubs, as well as coaching the cheerleaders. Worley also fundraised for the Cystic Fibrosis Foundation and American Heart Association. All the while also teaching part-time for Northeast State Community College and John C. Calhoun Community College. Her work within the Decatur school system earned her the Teacher of the Year award. Twice. She was also nominated to the Teacher Hall of Fame. The Alabama Jaycees, a Junior Chamber civic organization, recognized Worley as Alabama’s Outstanding Young Educator, and Good Housekeeping magazine honored her as one of the “100 Young Women of Promise.” Worley received several more honors and awards including being named by The Decatur Daily as one of the “Twenty Leaders of Decatur,” the Alumnus of the Year honor at the University of Montevallo, and the Education Award by the Alabama Senior Citizens Hall of Fame. Worley’s career in leadership began in 1983 when she was elected statewide to serve as President of the Alabama Education Association, she later won this election again and served from 1995-1997. She held many leadership positions since then, serving four terms on the Alabama Democratic Executive Committee; State President of the Association of Classroom Teachers, twice, and twice as State President of the American Association of University Women (AAUW). She was also the President of the Decatur Education Association, the Alabama Foreign Language Teachers Association, Alabama Classical Association and the Opportunity Toastmistress Club. Career of public service From 2002-2007 Worley served as the Alabama Secretary of State implementing substantial reforms to voting practices including longer and uniform polling hours, voter identification, and automatic recounts in close races. Worley previously served on the Welfare Reform task force, the Education Reform task force, the Lt. Governor’s Legislative Council, and the Tuition Eligibility Board. She spent time lobbying with the AARP Capital City Task Force on Senior Citizen issues, and worked with retired educators from The Alabama Retired Teachers’ Association, and was one of only seven super delegates to the 2016 Democratic National Convention from Alabama. In 2007, Worley became vice-chair of the Alabama Democratic Party until 2013 when she was elected to serve as the party’s chairman; a position she has continued to hold. Worley is a woman who is absolutely dedicated to serving others, and her many years of experience in education and politics speak for themselves; but just in case you needed to hear directly from her, she was kind enough to answer some of Alabama Today’s questions about her life, work and influences: How have other women influenced your success? Several women in my family, along with numerous female teachers, church, community, civic and political leaders taught me the value of hard work, the importance of education, the need for involvement in community and causes, and respect for the dignity of all persons. Looking back over my life, these women “took me under their wing,” and nourished, protected, promoted, and pushed me to set goals, and work to achieve those goals. What shaped your desire to work with education and government? Several family members were educators, and a few were involved in government; therefore, I grew up knowing that both professions made a difference in many lives. I began my professional career as an educator with a strong desire to make a difference, to enhance young minds, to move students forward and to see them succeed. Although my career as an educator was quite fulfilling, I realized that government also played a large role, perhaps a larger role, in making a difference. After all, government controls our economic well being, our basic health needs, our access to public education, the quality of air we breathe, the cleanliness of the water we drink, the affordability of housing, etc..; therefore, I became involved in government to make a difference. What has been your favorite area of service, and what is your favorite thing about that position? I have enjoyed all my positions of service; however, every job has its good days and its bad days. I loved the classroom (most days), and I will always be an educator “at heart,” but I am equally inspired by how much government can do to help others. Have you read any books that have shaped your perspective on life? I grew up with a Mother who took me to church “every time the door was open”; therefore, at an early age, the Bible and its teachings certainly shaped my perspective on life. I studied and taught English and Latin; therefore, classical to modern authors/books also shaped my perspective on life. What advice would you give to young women who want to work in education or politics? My best advice to young women who want to work in education or politics is listen and study at home, in school and beyond, learn as much as possible about a variety of subjects, get involved in the community in which one lives, work hard with the “perfection ethic” as a guide to complete any job, no matter how menial, and always try to do what is right, to the best of one’s ability. How do you spend your (rare) free time? My free time is rare; however, I enjoy reading a magazine or book, attending the theatre, a concert, etc., going to a place I’ve never been, from a “tourist trap” to an isolated location, sitting and talking with a friend in a restaurant, or hearing an excellent speaker, panel, etc
White House, in gamble, demands make-or-break health vote
Abandoning negotiations, President Donald Trump demanded a make-or-break vote on health care legislation in the House, threatening to leave “Obamacare” in place and move on to other issues if Friday’s vote fails. The risky move, part gamble and part threat, was presented to GOP lawmakers behind closed doors Thursday night after a long and intense day that saw a planned vote on the health care bill scrapped as the legislation remained short of votes amid cascading negotiations among conservative lawmakers, moderates and others. At the end of it the president had had enough and was ready to vote and move on, whatever the result, Trump’s budget director Mick Mulvaney told lawmakers. “‘Negotiations are over, we’d like to vote tomorrow and let’s get this done for the American people.’ That was it,” Rep. Duncan Hunter of California said as he left the meeting, summarizing Mulvaney’s message to lawmakers. “Let’s vote,” White House chief strategist Steve Bannon said as he walked out. “For seven and a half years we have been promising the American people that we will repeal and replace this broken law because it’s collapsing and it’s failing families, and tomorrow we’re proceeding,” House Speaker Paul Ryan said, then walked off without answering as reporters demanded to know whether the bill had the votes to pass. The outcome of Friday’s vote was impossible to predict. Both conservative and moderate lawmakers had claimed the bill lacked votes after a long day of talks. But the White House appeared ready to gamble that the prospect of failing to repeal former President Barack Obama‘s health law, after seven years of promising to do exactly that, would force lawmakers into the “yes” column. “It’s done tomorrow. Or ‘Obamacare’ stays,” said Rep. Chris Collins, R-N.Y., a top Trump ally in the House. Collins was among those predicting success Friday, but others didn’t hide their anxiety about the outcome. Asked whether Republicans would be unified on Friday’s vote, freshman Rep Matt Gaetz of Florida said, “I sure hope so, or we’ll have the opportunity to watch a unified Democratic caucus impeach Donald Trump in two years when we lose the majority.” Thursday’s maneuvers added up to high drama on Capitol Hill, but Friday promised even more suspense with the prospect of leadership putting a major bill on the floor uncertain about whether it would pass or fail. The Republican legislation would halt Obama’s tax penalties against people who don’t buy coverage and cut the federal-state Medicaid program for low earners, which the Obama statute had expanded. It would provide tax credits to help people pay medical bills, though generally skimpier than Obama’s statute provides. It also would allow insurers to charge older Americans more and repeal tax boosts the law imposed on high-income people and health industry companies. The measure would also block federal payments to Planned Parenthood for a year, another stumbling block for GOP moderates. In a concession to the conservative House Freedom Caucus, many of whose members have withheld support, the legislation would repeal requirements for insurers to cover “essential health benefits” such as maternity care and substance abuse treatment. The drama unfolded seven years to the day after Obama signed his landmark law, an anniversary GOP leaders meant to celebrate with a vote to undo the divisive legislation. “Obamacare” gave birth to the tea party movement and helped Republicans win and keep control of Congress and then take the White House. Instead, as GOP leaders were forced to delay the vote Thursday, C-SPAN filled up the time playing footage of Obama signing the Affordable Care Act. “In the final analysis, this bill falls short,” GOP Rep. Jaime Herrera Beutler of Washington state said in a statement Thursday as she became the latest rank-and-file Republican, normally loyal to leadership, to declare her opposition. “The difficulties this bill would create for millions of children were left unaddressed,” she said, citing the unraveling of Medicaid. In a danger sign for Republicans, a Quinnipiac University poll found that people disapprove of the GOP legislation by 56 percent to 17 percent, with 26 percent undecided. Trump’s handling of health care was viewed unfavorably by 6 in 10. House Minority Leader Nancy Pelosi, D-Calif., who as speaker was Obama’s crucial lieutenant in passing the Democratic bill in the first place, couldn’t resist a dig at the GOP disarray. “You may be a great negotiator,” she said of Trump. “Rookie’s error for bringing this up on a day when clearly you’re not ready.” Obama declared in a statement that “America is stronger” because of the current law and said Democrats must make sure “any changes will make our health care system better, not worse for hardworking Americans.” Trump tweeted to supporters, “Go with our plan! Call your Rep & let them know.” Unlike Obama and Pelosi when they passed Obamacare, the Republicans had failed to build an outside constituency or coalition to support their bill. Instead, medical professionals, doctors and hospitals — major employers in some districts — as well as the AARP and other influential consumer groups were nearly unanimously opposed. So were outside conservative groups who argued the bill didn’t go far enough. The Chamber of Commerce was in favor. Moderates were given pause by projections of 24 million Americans losing coverage in a decade and higher out-of-pocket costs for many low-income and older people, as predicted by the nonpartisan Congressional Budget Office. In an updated analysis Thursday, the CBO said late changes to the bill meant to win over reluctant lawmakers would cut beneficial deficit reduction in half, while failing to cover more people. And, House members were mindful that the bill, even if passed by the House, faces a tough climb in the Senate. Republished with permission of The Associated Press.
Terry Dunn qualifies in Alabama PSC race against President Twinkle Cavanaugh
Former Public Service Commission member Terry Dunn made good on his vow to run against Commission President Twinkle Andress Cavanaugh as qualifying ends Friday at 5 p.m. The 11th-hour move was confirmed by the Alabama Republican Party’s Reed Phillips by phone Friday afternoon. The former commissioner has been called a “closet liberal in league with environmentalists” from some quarters, and is likely to be opposed heavily by state-backed utilities like Alabama Power. Dunn has filed to challenge Cavanaugh, first elected in 2010, in the state’s Republican primary elections. It was reported as recently as Wednesday that no one would challenge Cavanaugh. Dunn originally filed for the race in August, but then dropped out on October 26 citing concerns that the utilities would spend “a lot of money” to defeat his bid to return to the commission. During his time on the commission, Dunn received political pushback for advocating formal rate hearings for Alabama Power, something opposed by fellow commissioners Cavanaugh and Jeremy Oden. Dunn echoed the call of environmental groups and the AARP in that effort, which opponents feared would create a “judicial setting” requiring all testifiers to retain attorneys. In lieu, several informal hearings were held throughout the state in 2013. Dunn’s chief of staff David Roundtree has also been criticized among conservatives for perceived stances against the coal industry, which employs thousands of Alabamians. The pro-coal group Coal Jobs Count released a video back in April lumping in Dunn with President Barack Obama, an exceedingly unpopular figure in Alabama. The video features coal miner John Box telling Dunn, “If you really care about jobs, get out of the way,” in response to a bill proposed by Dunn to ban commissioners from accepting contributions from the industry. The primaries are set for March 1, 2016 as part of Alabama’s new alignment with the so-called “SEC primary,” by which a new bloc of Southern states is banding together to increase their importance in national elections. The following post was made by Dunn on his personal Facebook page yesterday, foreshadowing a run: Dunn could not be contacted for comment at press time.
