Senior advocacy group proposes 'one-time catchup payment' for Social Security beneficiaries. How would it work?
Share this @internewscast.com

(NEXSTAR) – The Senior Citizen’s League, a nonpartisan organization focused on educating older Americans about legal, financial, and rights-based issues impacting their demographic, has suggested that the Social Security Administration consider implementing a “one-time catchup payment” to assist retirees in managing costs amid increasing inflation.

The “catchup payment,” also known as a “make-up payment” by The Senior Citizens League (TSCL), would ideally be given to Social Security beneficiaries in addition to next year’s cost-of-living adjustments (COLA), according to the group’s aspirations.

“Many retirees have faced a significant reduction in their purchasing power, as Cost-of-Living Adjustments (COLAs) have not kept up with the swiftly rising costs of essentials like food, housing, and healthcare,” states a TSCL statement shared with Nexstar.

Which rising costs are seniors facing?

In a press release from last month, TSCL estimated next year’s COLA to be 2.6% — just 0.1% more than this year’s increase. However, despite these increases being intended to match inflation and help Social Security beneficiaries sustain their spending power, TSCL has long contended that the metrics employed for calculating the annual increases (i.e., the Bureau of Labor’s Consumer Price Index for Urban Wage Earners, which itself gauges changes in prices for typical consumer goods and services) fail to reflect the expenses elderly Americans face for items like medicine, housing, and groceries.

A recent TSCL survey of nearly 2,000 Social Security beneficiaries revealed that one-fifth of respondents were spending over $1,000 exclusively on healthcare costs. Additionally, an overwhelming majority (96%) believed the Social Security Administration should derive their COLA calculations from a different dataset, such as the Consumer Price Index for the Elderly, which concentrates on costs impacting Americans aged 62 and above.  

“The recent inflation surge resulted in many older Americans losing Social Security buying power, and increased Medicare Part B premiums frequently negated their full COLA increase,” TSCL executive director Shannon Benton explained to Nexstar. “A catch-up payment would aid in recovering that lost value and provide urgently needed assistance for retirees reliant on fixed incomes.”

Earlier this year, the Bureau of Labor Statistics also stopped collecting data for its indexes in three cities and reduced collection efforts in about 15% of 72 other metro areas, sparking concerns that the more limited data might be less reflective of the prices seniors are paying. (BLS, however, claimed in July that its new practices did not result in any significant changes when compared to previous methods.)

“If the government fails to act and the CPI’s data quality begins to erode, it increases the likelihood of the government providing a COLA that doesn’t match inflation,” TSCL wrote at the time.

How would a ‘catchup payment’ help?

TSCL didn’t go into much detail about the specifics of its proposed “catchup payment” in last month’s press release. But in an email shared with Nexstar, TSCL suggested the money could be provided to eligible recipients in the same way that that 2009’s $250 Economic Recovery Payments were doled out to Social Security and SSI recipients amid the Great Recession. (A third of recipients ultimately used the money to pay off debt, the BLS later reported.)

Benton also pointed to the Economic Impact Payments, which provided to eligible U.S. citizens during the coronavirus pandemic, as evidence that special financial assistance can, and has, been disbursed by the federal government amid times of economic uncertainty.

How much does TSCL envision the payment to be?

$1,400, Benton told Nexstar. And while TSCL advocates specifically for seniors, Benton said the organization would be “thrilled if everyone on Social Security could receive a special boost.”

A representative for the Social Security Administration did not return a request for comment on the proposal.

Make-up payments aside, the majority of seniors surveyed for TSCL’s recent report still believe there are fundamental problems with how the Social Security Administration attempts to mitigate the effects of inflation when it comes to yearly benefit increases.

“If four in five seniors think inflation was higher than the government reported in 2024, maybe we should stop questioning their experiences and start questioning why the COLA is failing to measure them,” Benton said at the time.

Share this @internewscast.com
You May Also Like
Sonya Massey trial: Opening statements begin in trial of former Illinois Deputy Dean Grayson, accused of murder

High-Profile Illinois Trial Begins: Former Deputy Dean Grayson Faces Murder Charges

In Peoria, Illinois, the trial of Sean Grayson commenced on Wednesday with…
Celebrities from Prince Harry to Steve Bannon call for ban on AI 'superintelligence.' What is it?

Why Celebrities Like Prince Harry and Steve Bannon Are Demanding a Ban on AI Superintelligence

(NEXSTAR) – An open letter urging the cessation of progress in “superintelligence”…
Massie Faces Trump-Backed Primary Challenge Kentucky Race

Massie vs. Trump: High-Stakes Showdown in Kentucky’s Pivotal Primary Race

Kentucky Republican Rep. Thomas Massie is preparing for a fierce primary battle…
Alaska pilot seeks SCOTUS relief in case in which three beer cases led to forfeiture of $95k plane

Alaska Pilot Appeals to Supreme Court Over $95K Plane Forfeiture Stemming from Three Beer Cases

An 82-year-old bush pilot from Alaska is taking his legal battle to…
Los Angeles teacher says ICE agents are 'not the only ones with guns' following shooting of federal agent

Los Angeles Teacher Sparks Controversy with Bold Statement on Guns After ICE Agent Shooting

A Los Angeles high school history teacher, who is a prominent voice…
Alabama death row inmate insists innocence, urges governor to meet him before nitrogen-gas execution

Alabama Inmate’s Plea for Justice: A Last-Minute Appeal to Halt Nitrogen-Gas Execution

An Alabama death row inmate, who claims his innocence, has reached out…
Hunter Biden Reveals Profane Rage, Near Threat Toward Obama After Infamous Moment on Stage With His Dad

Explosive Revelation: Hunter Biden’s Fiery Outburst and Tension with Obama Exposed

Hunter Biden doesn’t hold Barack Obama in high regard. Tension between their…
Woman charged with abandoning newborn child at NYC subway stop

Newborn Found Abandoned at NYC Subway: Woman Faces Charges

Authorities in New York City have apprehended a woman accused of leaving…
St. Johns police reponds after student attacked on school bus

St. Johns Police Take Swift Action Following Alarming School Bus Incident

The St. Johns County Sheriff’s Office issued a statement indicating that a…
Charlotte man charged with Iryna Zarutska’s killing could face death penalty

Charlotte Resident Faces Potential Death Penalty in Connection with Iryna Zarutska’s Murder

The heart-wrenching case of Iryna Zarutska’s murder has taken a significant legal…
Father leaps into ocean after daughter falls from Disney cruise ship deck: reports

Report: Mother Allegedly Urged Daughter to Pose for Photo at Open Porthole Before Fall from Disney Cruise Ship

A family vacation aboard the Disney Cruise Line’s Disney Dream took a…
California woman hit by small plane during crash landing on soccer field

Shocking Plane Crash: California Woman Struck During Emergency Landing on Soccer Field

A woman in California was hit by a small aircraft that crash-landed…