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Social Security Benefits Won’t be Chained to the CPI

February 27, 2014

SIOUX FALLS, S.D. - The Obama administration has decided to drop the so-called "Chained CPI" to calculate Social Security benefits. Sarah Jennings, state director of AARP-South Dakota, said that will keep more money in seniors' pockets.

"The Chained CPI was a proposal that we felt failed to take into account how seniors actually spend their money. So if we would have adopted the Chained CPI, we would have seen a decrease in benefits, starting with current beneficiaries, and that would have compounded over time," Jennings explained. "AARP is very glad to see it was not included in the budget proposal."

About 160,000 people in South Dakota receive Social Security benefits. Jennings said Social Security benefits should not be seen as an entitlement.

"If you're working, check out that pay stub, we're all paying in each time," she pointed out. "It really is an earned benefit and I think more and more people, including our elected officials, are understanding that, and treating it as such."

Jennings said Social Security benefits are critical for senior citizens in South Dakota.

Jerry Oster, Public News Service - SD