Obama Promises Not To Use Chained CPI In Determining SSI Adjustments

May 1, 2013 | Social Security Disability Insurance

Expert SSD Lawyers at Newlin Disability


The federal government has agreed to hold out on making changes to the way increases in Supplemental Security Income (SSI) and other vital assistance programs are figured. In an announcement made earlier this month, President Barack Obama vowed not to implement a chained Consumer Product Index (CPI) to adjust payments to benefits due to inflation.

Currently, the benefit rate is adjusted based on the rise in costs of certain products and services that are seen as staples to survival, such as food, clothing, fuel, utilities, transportation, and housing. As the costs associated with these items rise, so does the payments in benefits an individual receives.

According to an article from Disability Scoop, President Obama has introduced a new system that would use a “chained”-CPI to figure these adjustments. The new system takes into account that when the cost of a certain product rises, consumers will switch to alternatives. This will, in turn, lower the increase recipients see each year, saving the country roughly $1 billion over the next decade.

Obama stated he does not intend to use the new system in figuring SSI benefits though, as the individuals who receive this income are in the greatest need of assistance.

The Social Security Disability Lawyers with Newlin Disability recognize how difficult it can be for some to make ends meet on disability benefits. The firm applauds protecting the disabled from decreases in benefit adjustments.

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