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Friday Alert 10/14/05
Alliance for Retired Americans
888 16th Street, N.W. - Washington DC, 20006 - (202)
974-8222 - www.retiredamericans.org
Social Security COLA Not Enough to
Cover Rising Costs
Retirees will see an average monthly increase of $39 in
their Social Security checks next year. The Social Security Administration
announced the 4.1% cost of living adjustment (COLA), the largest increase since
1991. However, one-fourth of the COLA will be eaten up by rising Medicare Part B
premiums, which will increase next year by $10.30 monthly. Additionally,
beneficiaries who choose to enroll in the new Part D prescription drug benefit
will pay an average of $32 per month. Sharp spikes in energy and gasoline prices
are also expected to take a significant bite out of seniors' fixed incomes. The
government estimates average households will pay 48% more in natural gas and 32%
more for heating oil. "Social Security's COLA will simply not be enough to cover
the increasing costs of living as an older person in America," said George J.
Kourpias, president of the Alliance.
Delphi Bankruptcy Jeopardizes Benefits for Thousands
of Retirees
In an ominous sign for the domestic auto industry, Delphi, the
nation's largest auto parts maker, filed for bankruptcy on Saturday. In its
filing, the company said it would seek to end health and life insurance for its
12,000 retirees by mid-December, The New York Times reports. Delphi, whose
accounting practices are under investigation by the FBI and the Securities and
Exchange Commission, also wants unionized workers to concede to deep wage and
benefit cuts, a move the United Auto Workers resoundingly rejected.
After fattening the compensation and severance packages of his top 21
executives on Friday, Chief Executive Robert S. Miller said in a written
statement on the bankruptcy, "We simply cannot afford to continue to be
encumbered by high legacy issues and burdensome restrictions under current labor
agreements that impair our ability to compete."
Delphi reports its pension plan is underfunded by $5 billion, while the
federal Pension Benefit Guaranty Corporation (PBGC) calculates an $11 billion
shortfall. CEO Miller claims Delphi will try to keep its promises to retirees if
workers give in to wage cuts but as head of Bethlehem Steel, Miller dumped $3.7
billion in pension obligations onto the beleaguered PBGC. "Delphi's workers,
retirees and the American taxpayer are the ones who suffer because of the
mismanagement of Delphi," said Ruben Burks, secretary-treasurer of the Alliance
and former secretary-treasurer of the UAW.
Medicare Drug Plan Comparison Website Delayed
The planned October 13 launch of Medicare's online comparison tool at
www.medicare.gov intended to help seniors choose a drug plan came and went
with no service. Citing Yom Kippur as the reason for the delay, Medicare
officials would not confirm a revised date instead saying it hoped to debut its
site by "mid-October."
Although seniors are more likely to call the agency's toll free helpline,
1-800-MEDICARE, their families and counselors will use the web tool to navigate
through the hundreds of drug plans available regionally through private
insurance companies. Insurers began marketing directly to beneficiaries on
October 1. Seniors can begin to enroll in a drug plan on November 15; the drug
benefit will begin January 1, 2006.
Say No to New Tax Cuts for Millionaires!
Monday, October 17 and Tuesday, October 18 are national call-in days to tell
Congress to make the right spending and tax cut choices when dealing with the
federal budget.
Millionaires, who already receive $100,000 per year from the Bush tax cuts,
are slated for another $20,000 tax break starting January 1, 2006. Tell your
Senators and Representative it makes no sense after Hurricane Katrina to cut
necessary programs like Medicaid and food stamps to pay for new, unaffordable
tax cuts for the rich. Dial 1-800-426-8073 to be connected toll-free to the
Capitol Switchboard. Call three times and ask for your House member and two
Senators!
Be a Part of the Recovery Effort for Working Families in
the Gulf Coast
Working family activists have contributed more than $544,000 to
the AFL-CIO's special Hurricane Relief Fund of the Union Community Fund. Help
working families rebuild after Hurricane Katrina by making a tax-deductible
donation to the AFL-CIO Union Community Fund:
https://secure.ga3.org/08/UCF_Katrina_Relief .
Find out about volunteer opportunities by calling the AFL-CIO toll-free at
1-877-235-2469.
Become part of a progressive grassroots movement! Join the Alliance:
www.retiredamericans.org/join |
