Leading Latino Organizations Denounce Reported Plan to Cut Social Security, Medicare

FOR IMMEDIATE RELEASE:
Thursday, July 7, 2011

CONTACT:
Enrique Cortez
enrique@enitially.com
(202) 525-7411

WASHINGTON DC – Today, news reports surfaced of a proposal being considered by the Obama Administration and Congressional leaders to cut Social Security and Medicare as part of the ongoing negotiations over the national debt. The plan would cut the Social Security benefits of current and future retirees by changing the CPI formula used to calculate the cost-of-living adjustment (COLA). Latinos for a Secure Retirement Executive Director, Jeff Cruz, issued the following statement:

“We are deeply disappointed to hear that the President and Members of Congress would consider turning their backs on those citizens who need these vital programs the most." As a whole, the proposed cuts would be especially painful to Latino men and women who have longer life expectancies, rely more on Social Security income and are already more economically vulnerable because many of them have lower incomes throughout their lifetime and therefore lower benefits.”

While keeping millions of seniors out of poverty every year, the average Social Security benefit for Latino seniors is only $12,213 for men, and only $9,536 for Latinas. The proposed cuts are especially egregious for Latinos given that these Social Security benefits represent nearly all the income for almost half of Latino seniors.

The Congressional Budget Office estimates adoption of the so-called “Chained-CPI” to determine Social Security’s annual COLA would cut benefits by $112 billion over 10 years. Official estimates show that beneficiaries who retire at age 65 and receive average benefits would get $560 less a year at age 75 than they would under current law and get $1,000 less a year at age 85 – a 3.7 percent cut and a 6.5 percent cut, respectively. The proposal would cut $1.6 trillion over Social Security’s 75 year valuation period – mainly from the oldest of the old, primarily women and disproportionately poor.

"The plan to shift to a ‘Chained-CPI’ may sound like a harmless technical change, but it is a substantial cut in Social Security that will devastate millions of Americans," Mr. Cruz continued. "Social Security has never contributed a single penny to the deficit. Politicians who ignore the actual causes of our debt to cut modest Social Security benefits earned by hard working Americans will be held accountable by Latino voters in the next election."

The Latinos for a Secure Retirement (LSR) coalition brings together some of the strongest and most prominent advocates for Latinos in the country including the League of United Latin American Citizens (LULAC), the Labor Council for Latin American Advancement (LCLAA), The Hispanic Federation, the National Hispanic Council on Aging, MANA- A National Latina Organization, SER- Jobs for Progress National, Inc., the Institute for the Puerto Rican/Hispanic Elderly, the American GI Forum and the National Association for Hispanic Elderly.

Dr. Carmela G. Lacayo, President/CEO of the National Association for Hispanic Elderly and LSR coalition member, issued the following statement: "If this Obama Administration behind-the-scenes deal is true, it is a severance of the Democratic Party's historical commitment to protect the benefits of working men and women of America. For the Hispanic community, the majority of whom are blue collar workers this would create serious economic barriers for future retirees, the disabled and dependent children. The major impact would hit our seniors today. Hispanic seniors are among the poorest of the poor – Social Security benefits are the safety net for so many. The Hispanic community must stand up and protest, we must send clear messages to our elected leaders that we will remember who truly speaks for us and protects these benefits that we have all worked for.”

Ignacio Salazar, President & CEO, SER-Jobs for Progress National, Inc. and LSR coalition member, issued the following statement: “Many Latinos live paycheck to paycheck when they are young and raising a family. They do not have the extra money to save for retirement to sustain a comfortable standard of living. If the current formula used to calculate the annual COLA is changed to the chained CPI, Social Security benefits will be decreased and further eroded by inflation. When these young Latinos enter into retirement age with minimal retirement savings, the proposed cuts to Social Security benefits will have a devastating impact on their standard of living.”

Latinos for a Secure Retirement and its coalition members urge President Obama and Congress to remove this proposal from consideration.

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For more information about Latinos for Secure Retirement, visit www.latinosforasecureretirement.org.

For more information on LSR Coalition members including:

League of United Latin American Citizens, visit http://lulac.org

Labor Council for Latin American Advancement, visit http://www.lclaa.org

The Hispanic Federation, visit http://www.hispanicfederation.org

The National Hispanic Council on Aging, visit http://www.nhcoa.org

MANA, A National Latina Organization, visit http://www.hermana.org

SER- Jobs for Progress National, Inc., visit http://www.ser-national.org

Institute for the Puerto Rican/Hispanic Elderly, visit http://www.iprhe.org

American GI Forum, visit http://www.agifusa.org

National Association for Hispanic Elderly, visit http://www.anppm.org