Bill Text: NJ ACR158 | 2010-2011 | Regular Session | Introduced
Bill Title: Memorializes Congress and President to enact H.R.2429, "Consumer Price Index for Elderly Consumers Act of 2009."
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2010-11-22 - Introduced, Referred to Assembly Consumer Affairs Committee [ACR158 Detail]
Download: New_Jersey-2010-ACR158-Introduced.html
ASSEMBLY CONCURRENT RESOLUTION No. 158
STATE OF NEW JERSEY
214th LEGISLATURE
INTRODUCED NOVEMBER 22, 2010
Sponsored by:
Assemblyman NELSON T. ALBANO
District 1 (Cape May, Atlantic and Cumberland)
Assemblyman MATTHEW W. MILAM
District 1 (Cape May, Atlantic and Cumberland)
SYNOPSIS
Memorializes Congress and President to enact H.R.2429, "Consumer Price Index for Elderly Consumers Act of 2009."
CURRENT VERSION OF TEXT
As introduced.
A Concurrent Resolution memorializing the Congress and President of the United States to enact H.R.2429, the "Consumer Price Index for Elderly Consumers Act of 2009."
Whereas, Since 1975, Social Security payments have increased every year to compensate for inflationary increases in the cost of goods and services purchased by senior citizens who depend upon these annual adjustments to maintain their quality of life; and
Whereas, These increases, known as Social Security cost of living adjustments (COLAs), are tied to the Consumer Price Index (CPI), a measure of inflation calculated by the United States Bureau of Labor Statistics that considers the change over time in a set of goods and services consumed by the average American worker; and
Whereas, Because of a drop in energy prices from near record highs last year, the CPI has decreased more than two percent in the past year, and as a result, Social Security benefits are expected to be frozen in 2010 for the first time in nearly 35 years; and
Whereas, Some economists have argued that the CPI is not a good measure of the actual costs borne by senior citizens who tend to spend more on health care, which has continued to increase in price despite the overall decrease in the CPI, than energy, which is driving the recent reduction in the CPI; and
Whereas, A freeze in benefits will negatively impact the 51 million Americans who depend upon Social Security benefits to make ends meet, and will be especially burdensome on elderly Americans who rely on these benefits for approximately 40% of their incomes; and
Whereas, H.R.2429, the "Consumer Price Index for Elderly Consumers Act of 2009," introduced in Congress by Representative Charles Gonzalez, would tie Social Security COLAs to a newly created Elderly Consumer Price Index designed to more accurately capture the mix of goods and services typically consumed by older Americans; compared to the current CPI, the index would focus more on the costs of insurance, medical care and prescription medication and less on items such as cars, houses, and energy prices; and
Whereas, It is of the utmost concern to the citizens of New Jersey that the State's older residents are able to meet their increasing expenses and maintain their quality of life, and it is in the best interests of the State Legislature to support the enactment of H.R. 2429, the "Consumer Price Index for Elderly Consumers Act of 2009;" now, therefore,
Be It Resolved by the General Assembly of the State of New Jersey (the Senate concurring):
1. The Congress and President of the United States are respectfully memorialized to enact H.R.2429, the "Consumer Price Index for Elderly Consumers Act of 2009," which creates a Consumer Price Index for Elderly Consumers to which Social Security cost of living adjustments would be tied.
2. Duly authenticated copies of this concurrent resolution signed by the Speaker of the General Assembly and the President of the Senate, and attested to by the Clerk of the General Assembly and the Secretary of the Senate, shall be transmitted to the President of the United States, the President of the United States Senate, the Speaker of the United States House of Representatives, the Majority and Minority leaders of the United States Senate and House of Representatives, and every member of Congress elected from this State.
STATEMENT
This concurrent resolution memorializes the Congress and President of the United States to enact H.R.2429, the "Consumer Price Index for Elderly Consumers Act of 2009," which creates a Consumer Price Index for Elderly Consumers to which Social Security cost of living increases would be tied.
Since 1975, Social Security payments have increased every year to compensate for inflationary increases in the cost of goods and services purchased by senior citizens. These increases, known as Social Security cost of living adjustments (COLAs), are tied to the Consumer Price Index (CPI) which measures the change in price of certain goods and services consumed by the average American worker. Because of a decline in the CPI in the past year, largely due to decreasing energy prices, Social Security benefits are not expected to increase in 2010, negatively impacting those who rely on those benefits for a significant part of their incomes.
Some economists have argued that the CPI is not an appropriate index of the costs borne by senior citizens who, for example, spend less on energy and more on health care, which has continued to increase in price, than the average consumer.
H.R.2429, introduced in Congress by Representative Charles Gonzalez, ties COLAs to a newly created Elderly Consumer Price Index designed to more accurately capture the goods and services consumed by senior citizens.
